Question

The table below shows the typical hours worked by employees at a company. A salaried employee makes $67,000 per year. Hourly employees get paid $25 per hour, but get $37.50 per hour for each hour over 40 hours.

Sun.
Mon.
Tues.
Wed.
Thurs.
Fri.
Sat.
0
10
8
8
7
6.5
4.5

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.

Answer 1

IT IS C

Explanation:

Answer 2

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

Explanation:

A salaried employee makes $67,000 per year. To know which option is better, we need to calculate how much hourly employees make in year.

An hourly employee needs to work 44 hours a week (0+10+8+8+7+6.5+4.5 = 40). So the first 40 hours will be paid 25$ per hour and the next 4 will be paid $37.50 per hour. So an hourly employee will make $1150 a week (40*$25 + 4*$37.50 = $1150).

Considering that a month has 4 weeks, and a year has 12 months, an hourly employee will make $55,200 a year ($1150*4*12=$55,200).

An hourly employee makes $55,200 a year, while a salaried employee makes $67,000. So I would recommend the option c) to a new employee.