Question

A father decides to put his two sons to work washing cars. The business involves going to a customer’s home and providing cleaning services (wash, wax, detail, or clean). Rather than paying a flat wage, the father decides to pay an incentive according

to the following schedule:
Incentive per Car Time Required to Complete Charge to Customer
Wash $ 1 0.33 hr $ 5
Wax $ 2 0.5 hr $10
Detail $ 5 1.5 hrs $35
These charges are less than local car washes charge, and there is the added conven- ience of having the car washed at your own home. Business is booming, but there is con- siderable fighting in the home. The boys drag their feet at waxing and detailing, and they fight over the chance to wash cars, if wash they must. Truth be told, both boys would rather work at the local McDonald’s. Why the attitude from the sons, or are they right?

Answer 1

The attitude of the sons in the scenario can be attributed to the incentive pay system set up by their father. The sons would rather work at McDonald's because the incentive pay system creates a disparity in wages between the different tasks.

Step-by-step explanation:

The attitude from the sons in the given scenario can be attributed to the incentive pay system set up by their father. The sons would rather work at McDonald's because the incentive pay system creates a disparity in wages between the different tasks. While washing cars earns them $1 per car, waxing and detailing earn them $2 and $5 per car, respectively. Since their father charges less than local car washes, the sons are not motivated to spend more time on higher-paying tasks. This creates a situation where they fight over the chance to wash cars because that is the task that pays the least but takes the least amount of time.