The table below shows the typical hours worked by employees at a company. A salaried employee makes [tex]\$ 78,000[/tex] per year. Hourly employees get paid [tex]\$ 26[/tex] per hour, but get [tex]\$ 39[/tex] per hour for each hour over 40 hours.
\begin{tabular}{|c|c|c|c|c|c|c|}
\hline Sun. & Mon. & Tues. & Wed. & Thurs. & Fri. & Sat. \\
\hline 0 & 8 & 8.5 & 9.5 & 10 & 8 & 3 \\
\hline
\end{tabular}

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 :

Let's compare the weekly earnings of a salaried employee and an hourly employee.

### 1. Calculation of Total Hours Worked in a Week
First, we add up the total hours worked by an employee during the week:
[tex]\[ 0 + 8 + 8.5 + 9.5 + 10 + 8 + 3 = 47 \text{ hours} \][/tex]

### 2. Calculation of Weekly Salary for a Salaried Employee
A salaried employee makes \[tex]$78,000 per year. To find the weekly salary, we divide the annual salary by the number of weeks in a year (52 weeks): \[ \frac{78000}{52} = 1500 \text{ dollars per week} \] ### 3. Calculation of Weekly Pay for an Hourly Employee An hourly employee is paid \$[/tex]26 per hour but receives \$39 per hour for hours worked over 40 hours in a week.
- Regular hours: 40 hours
- Overtime hours: [tex]\( 47 - 40 = 7 \)[/tex] hours

Regular pay for 40 hours:
[tex]\[ 40 \times 26 = 1040 \text{ dollars} \][/tex]

Overtime pay for 7 hours:
[tex]\[ 7 \times 39 = 273 \text{ dollars} \][/tex]

Total weekly pay for the hourly employee:
[tex]\[ 1040 + 273 = 1313 \text{ dollars} \][/tex]

### 4. Comparison of Weekly Earnings
- Salaried employee: 1500 dollars per week
- Hourly employee: 1313 dollars per week

Given these calculations, we can see that salaried employees make more per week than hourly employees.

Therefore, the correct choice is:

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

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