Question

The table below shows the typical hours worked by employees at a company. A salaried employee makes $50,000 per year. Hourly employees get paid $20 per hour, but get $30 per hour for each hour over 40 hours.

Sun. Mon. Tues. Wed. Thurs. Fri. Sat. 0 8 8 9 9.5 7.5 4
(*the numbers are in the exact order of the days*)
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

The Answer is B

Answer 2

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

Explanation:

Let's calculate the total number of hours an employee will work:

Total number of hours =
`8+8+9+9.5+7.5+4`

=
`46`

So total number of hours an employee will work is 46 hours.

An employee gets paid $30 per hour up to 40 hours.

Payment for 40 hours =
`40*20`

=
`800`

Payment for extra hours worked =
`6*30`

=
`180`

Total wage per week =
`800+180`

=
`980`

So total payment received per week = $980

Number of weeks per year =
`(365)/(7)`

≈
`52`

Total payment per week for a salaried employee :

=
`50,00/52`

=
`961.5384`

Therefore, Hourly employees will get paid more per week than salaried employees.

Answer

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