Answered

The table below shows the typical hours worked by employees at a company. A salaried employee makes [tex]\$50,000[/tex] per year. Hourly employees get paid [tex]\$20[/tex] per hour, but get [tex]\$30[/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 & 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.



Answer :

Let's analyze the problem step-by-step to determine which payment option to recommend to a new employee.

1. Calculate Total Hours Worked:
We are given the number of hours worked each day of the week:
[tex]\[ \text{Sun: } 0, \text{ Mon: } 8, \text{ Tues: } 8, \text{ Wed: } 9, \text{ Thurs: } 9.5, \text{ Fri: } 7.5, \text{ Sat: } 4 \][/tex]
Summing these hours, we get:
[tex]\[ 0 + 8 + 8 + 9 + 9.5 + 7.5 + 4 = 46 \text{ hours} \][/tex]

2. Calculate Standard Hours and Overtime Hours:
- Standard hours (up to 40 hours):
[tex]\[ \min(46, 40) = 40 \text{ hours} \][/tex]
- Overtime hours (hours beyond 40):
[tex]\[ \max(46 - 40, 0) = 6 \text{ hours} \][/tex]

3. Calculate Weekly Pay for Hourly Employees:
- Hourly rate: \[tex]$20 per hour - Overtime rate: \$[/tex]30 per hour
- Weekly pay:
[tex]\[ (\text{Standard hours} \times \text{Hourly rate}) + (\text{Overtime hours} \times \text{Overtime rate}) \][/tex]
Substituting the values:
[tex]\[ (40 \times 20) + (6 \times 30) = 800 + 180 = 980 \text{ dollars} \][/tex]

4. Calculate Weekly Pay for Salaried Employees:
- Annual salary: \[tex]$50,000 - Weekly pay (assuming 52 weeks in a year): \[ \frac{50,000}{52} \approx 961.54 \text{ dollars} \] 5. Compare Weekly Pay: - Weekly pay for hourly employees: \$[/tex]980
- Weekly pay for salaried employees: \[tex]$961.54 6. Recommendation: Since hourly employees make \$[/tex]980 per week, which is more than the \$961.54 per week for salaried employees, the hourly pay option is better.

Therefore, the best answer is:
b. Hourly pay. Hourly employees make more per week than salaried employees.