Question

The managers at Smith's BBQ have been asked to cut back Total Wages by 2.5% in the next two

weeks to account for slow sales. Using the Current Week as the benchmark, what would be the
estimate for the reduced Total Wages for the next two weeks combined?

Answer 1

To estimate the reduced Total Wages for the next two weeks combined, you need to calculate the 2.5% reduction for each week and then add them together.

Step-by-step explanation:

To estimate the reduced Total Wages for the next two weeks combined, we need to calculate the 2.5% reduction for each week and then add them together.

1. Calculate the reduction in Total Wages for the first week: multiply the Total Wages for the Current Week by 2.5% (or 0.025) to get the reduction amount.
2. Calculate the reduction in Total Wages for the second week: again, multiply the Total Wages for the Current Week by 2.5% (or 0.025) to get the reduction amount.
3. Add the reduction amounts from the first and second week to get the estimate for the reduced Total Wages for the next two weeks combined.

For example, if the Total Wages for the Current Week is $10,000, the reduction amount for the first week would be $250 (0.025 * $10,000), and the reduction amount for the second week would also be $250.

Therefore, the estimate for the reduced Total Wages for the next two weeks combined would be $500.