Question

How much would it cost to pay five workers working at the U.S. federal minimum wage to do the same job in the same amount of time? Remember, if the workers each work 60 hours per week, then they would make $7.25 per hour for the first 40 hours ($290 total per week), and $10.88 per hour for the remaining 20 hours ($217.60 per week).

What would the labor costs be for each shirt made in the United States?  

Answer 1

To pay the workers for the first 40 hours, it would be $1,450. To pay the workers in the 20 hour over time pay, it would be $1,088. This is $2,538, or $507.60 each.

Answer 2

It would cost $2,538 to pay five workers.

Explanation:

one worker gets per hour for the first 40 hours = $7.25

Total pay for 40 hours = 7.25 × 40 = $290

After that for overtime they get per hour for 20 hours = $10.88

Total pay for overtime of 20 hours = $217.60

Total income of one worker per week ( 60 hours) = 290 + 217.60 = $507.60

For five workers = $507.60 × 5 = $2,538.00

Labor costs = 507.60 ÷ 60 = $8.46 per hour for each worker.

It would cost $2,538 to pay five workers working at the U.S. federal. $507.60 for each worker.