The table below shows the typical hours worked by employees at a company. A salaried employee makes [tex]$67,000 per year. Hourly employees get paid $[/tex]25 per hour, but get $37.50 per hour for each hour over 40 hours.

| Sun. | Mon. | Tues. | Wed. | Thurs. | Fri. | Sat. |
|------|------|-------|------|--------|------|------|
| 0 | 10 | 8 | 8 | 7 | 6.5 | 4.5 |

Which of the payment options would you recommend to a new employee?

A. Either one. Hourly and salaried employees earn the same amount per week.
B. Hourly pay. Hourly employees make more per week than salaried employees.
C. Salaried pay. Salaried employees make more per week than hourly employees.
D. There is not enough information given to compare weekly earnings.

Please select the best answer from the choices provided:
A, B, C, or D.



Answer :

To determine which payment option is better, we need to compare the weekly earnings of a salaried employee with the weekly earnings of an hourly employee based on the given working hours.

### Step-by-Step Solution:

1. Total Hours Worked Per Week:
We begin by summing the hours worked each day.
[tex]\[ \text{Total Hours} = 0 + 10 + 8 + 8 + 7 + 6.5 + 4.5 = 44 \text{ hours} \][/tex]

2. Split Hours into Regular and Overtime:
- Regular hours are capped at 40 hours per week.
- Overtime hours are any hours worked beyond 40 hours.

[tex]\[ \text{Regular Hours} = \min(44, 40) = 40 \text{ hours} \][/tex]
[tex]\[ \text{Overtime Hours} = \max(44 - 40, 0) = 4 \text{ hours} \][/tex]

3. Hourly Employee Weekly Pay:
- Regular pay is calculated at \[tex]$25 per hour. - Overtime pay is calculated at \$[/tex]37.50 per hour.

[tex]\[ \text{Regular Pay} = 40 \times \$25 = \$1000 \][/tex]
[tex]\[ \text{Overtime Pay} = 4 \times \$37.50 = \$150 \][/tex]
[tex]\[ \text{Total Weekly Pay for Hourly Employee} = \$1000 + \$150 = \$1150 \][/tex]

4. Salaried Employee Weekly Pay:
- The annual salary is \[tex]$67,000. - Weekly pay is calculated by dividing the annual salary by 52 weeks. \[ \text{Weekly Pay for Salaried Employee} = \frac{\$[/tex]67000}{52} \approx \[tex]$1288.46 \] 5. Comparison of Weekly Earnings: - Hourly employee weekly pay: \$[/tex]1150
- Salaried employee weekly pay: \[tex]$1288.46 Since $[/tex]\[tex]$1288.46$[/tex] (salaried) is greater than [tex]$\$[/tex]1150$ (hourly), salaried employees make more per week than hourly employees under the given conditions.

### Conclusion:
The best option for a new employee, based on the weekly earnings comparison, is:

c. Salaried pay. Salaried employees make more per week than hourly employees.