To determine which payment option to recommend to a new employee, we need to compare the weekly earnings of both salaried and hourly employees based on the given information.
Firstly, let's calculate the total hours worked in the week by summarizing each day's contribution:
[tex]\[
0 \, \text{(Sun.)} + 10 \, \text{(Mon.)} + 8 \, \text{(Tues.)} + 8 \, \text{(Wed.)} + 7 \, \text{(Thurs.)} + 6.5 \, \text{(Fri.)} + 4.5 \, \text{(Sat.)} = 44 \, \text{hours}
\][/tex]
Next, we calculate the weekly earnings for an hourly employee. Here are the steps:
1. Regular hours: An hourly employee works up to 40 hours at the regular rate.
2. Overtime hours: Any hours worked beyond 40 hours are considered overtime.
From the total 44 hours worked:
- Regular hours: [tex]\( 40 \)[/tex] hours
- Overtime hours: [tex]\( 44 - 40 = 4 \)[/tex] hours
Given the hourly rates:
- Regular hourly rate: \[tex]$25 per hour
- Overtime hourly rate: \$[/tex]37.50 per hour
Next, we calculate the weekly earnings for an hourly employee:
- Earnings from regular hours: [tex]\( 40 \, \text{hours} \times 25 \, \text{\$/hour} = 1000 \, \text{\$} \)[/tex]
- Earnings from overtime hours: [tex]\( 4 \, \text{hours} \times 37.50 \, \text{\$/hour} = 150 \, \text{\$} \)[/tex]
Therefore, the total earnings for an hourly employee in a week would be:
[tex]\[
1000 \, \text{\$} + 150 \, \text{\$} = 1150 \, \text{\$}
\][/tex]
Now, let’s calculate the weekly earnings for a salaried employee based on the annual salary of \[tex]$67,000:
\[
\text{Weekly earnings} = \frac{67000 \, \text{\$[/tex]}}{52 \, \text{weeks}} \approx 1288.46 \, \text{\[tex]$}
\]
Comparing the weekly earnings of both payment options:
- Hourly employee earnings: \$[/tex]1150
- Salaried employee earnings: \$1288.46
Since the salaried employee earns more per week than the hourly employee, the best recommendation for a new employee would be:
[tex]\[
\text{c. Salaried pay. Salaried employees make more per week than hourly employees.}
\][/tex]
