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

Answer: c

Step-by-step explanation: $67,000 divided by 52 means it pays $1288 per week.

Typical employees work 44 hours per week.

For hourly employees take 40 x $25 (which equals $1000), plus 4 hours of overtime (4 x 37.50) and you get a total of $1150 per week.