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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]$\[tex]$20$[/tex][/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 :

GinnyAnswer
To determine the most suitable payment option for a new employee based on the provided typical hours worked at the company and the given salary details, we need to compare the weekly earnings of hourly and salaried employees.

### Step 1: Calculate the Total Hours Worked in a Week

Given the hours worked each day:
- Sunday: 0 hours
- Monday: 8 hours
- Tuesday: 8 hours
- Wednesday: 9 hours
- Thursday: 9.5 hours
- Friday: 7.5 hours
- Saturday: 4 hours

Total hours worked in a week = 0 + 8 + 8 + 9 + 9.5 + 7.5 + 4 = 46 hours

### Step 2: Regular and Overtime Hours

Regular hours: The company policy states that up to 40 hours per week are regular hours. Therefore, regular hours = 40 hours.

Overtime hours: The hours worked beyond the regular hours (40 hours) are considered overtime hours.
Overtime hours = Total hours - Regular hours = 46 hours - 40 hours = 6 hours

### Step 3: Calculate Hourly Employee Pay

Hourly rate for regular hours = \[tex]$20 per hour Overtime rate = \$[/tex]30 per hour for each hour over 40 hours

Weekly earnings for hourly employees are calculated as follows:
- Regular pay = Regular hours × Hourly rate = 40 hours × \[tex]$20/hour = \$[/tex]800
- Overtime pay = Overtime hours × Overtime rate = 6 hours × \[tex]$30/hour = \$[/tex]180

Total weekly pay for hourly employees = Regular pay + Overtime pay = \[tex]$800 + \$[/tex]180 = \[tex]$980 ### Step 4: Calculate Salaried Employee Weekly Pay The salaried employee's annual salary is \$[/tex]50,000.
To find the weekly salary, we divide the annual salary by the number of weeks in a year (52 weeks).

Weekly pay for salaried employees = \[tex]$50,000 / 52 ≈ \$[/tex]961.54

### Step 5: Compare Weekly Earnings

- Hourly employee weekly earnings = \[tex]$980 - Salaried employee weekly earnings ≈ \$[/tex]961.54

Since \[tex]$980 (hourly pay) is greater than \$[/tex]961.54 (salaried pay), the hourly employees make more money per week than the salaried employees.

### Conclusion

The best payment option for a new employee, based on the given data, is:

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

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