The table below shows the typical hours worked by employees at a company. A salaried employee makes [tex]\$ 67,000[/tex] per year. Hourly employees get paid [tex]\$ 25[/tex] per hour, but get [tex]\$ 37.50[/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 & 10 & 8 & 8 & 7 & 6.5 & 4.5 \\
\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
D



Answer :

To determine which payment option to recommend to a new employee, we need to compare the weekly earnings of salaried employees and hourly employees based on the data provided. Let's calculate step by step:

### Step 1: Calculate Total Hours Worked in the Week
First, find the total number of hours worked in the week by adding the daily hours:
[tex]\[ 0 + 10 + 8 + 8 + 7 + 6.5 + 4.5 = 44 \text{ hours} \][/tex]

### Step 2: Determine Regular and Overtime Hours
- Regular hours are up to 40 hours per week.
[tex]\[ \text{Regular hours} = \min(40, 44) = 40 \text{ hours} \][/tex]
- Overtime hours are any hours worked over 40 hours per week.
[tex]\[ \text{Overtime hours} = \max(0, 44 - 40) = 4 \text{ hours} \][/tex]

### Step 3: Calculate Hourly Employee's Weekly Pay
The hourly rate is \[tex]$25/hour, and the overtime rate is \$[/tex]37.50/hour. Calculate the weekly pay by adding the pay for regular and overtime hours:
[tex]\[ \text{Hourly weekly pay} = (\text{Regular hours} \times \text{Hourly rate}) + (\text{Overtime hours} \times \text{Overtime rate}) \][/tex]
[tex]\[ \text{Hourly weekly pay} = (40 \times 25) + (4 \times 37.5) \][/tex]
[tex]\[ \text{Hourly weekly pay} = 1000 + 150 = 1150 \][/tex]

### Step 4: Calculate Salaried Employee's Weekly Pay
A salaried employee makes \[tex]$67,000 annually. Divide this by 52 weeks to find the weekly salary: \[ \text{Salaried weekly pay} = \frac{67,000}{52} \approx 1288.46 \] ### Step 5: Compare the Weekly Pays Now, let's compare the calculated weekly pay: - Hourly weekly pay: \$[/tex]1150.00
- Salaried weekly pay: \[tex]$1288.46 Given that the salaried weekly pay (\$[/tex]1288.46) is more than the hourly weekly pay (\$1150.00), the best recommendation is:

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