The table below shows the typical hours worked by employees at a company. A salaried employee makes [tex]$50,000 per year. Hourly employees get paid $[/tex]20 per hour, but get $30 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 & 9 & 9.5 & 7.5 & 4 \\
\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, let's analyze the weekly earnings for both salaried and hourly employees based on the provided work hours:

First, we sum up the hours worked from Sunday to Saturday:
[tex]\[ 0 + 8 + 8 + 9 + 9.5 + 7.5 + 4 = 46 \text{ hours} \][/tex]

Given that an hourly employee is paid \[tex]$20 per hour for the first 40 hours and \$[/tex]30 per hour for any overtime hours, we need to calculate both regular and overtime hours:
[tex]\[ \text{Regular hours} = 40 \][/tex]
[tex]\[ \text{Overtime hours} = 46 - 40 = 6 \text{ hours} \][/tex]

Next, calculate the pay for the hourly employee:
[tex]\[ \text{Regular pay} = 40 \text{ hours} \times \$20/\text{hour} = \$800 \][/tex]
[tex]\[ \text{Overtime pay} = 6 \text{ hours} \times \$30/\text{hour} = \$180 \][/tex]
[tex]\[ \text{Total hourly pay} = \$800 + \$180 = \$980 \][/tex]

Next, let's calculate the weekly pay for a salaried employee:
[tex]\[ \text{Annual salary} = \$50,000 \][/tex]
[tex]\[ \text{Weeks per year} = 52 \][/tex]
[tex]\[ \text{Weekly salary} = \frac{\$50,000}{52} \approx \$961.54 \][/tex]

Now, compare the weekly earnings of hourly and salaried employees:
[tex]\[ \text{Hourly weekly pay} = \$980 \][/tex]
[tex]\[ \text{Salaried weekly pay} = \$961.54 \][/tex]

Since \[tex]$980 > \$[/tex]961.54, an hourly employee makes more per week than a salaried employee. Therefore, the best recommendation for a new employee is:

b. Hourly pay. Hourly employees make more per week than salaried employees.