Question

Workers are paid a rate of $0.30 per unit. Using productivity figures from the previous question, determine how much workers earned per hour in 2016. If their rate increases to $0.35 in 2021 and to $0.40 in 2026, how much would they earn per hour in those years?

Answer 1

Explanation:

From the previous question, we know that workers produced 2500 units in 2016 and 3500 units in 2021.

In 2016, workers earned:

Earnings = (units produced) x (rate per unit) = (2500) x ($0.30) = $750

To find their hourly rate in 2016, we need to divide their earnings by the number of hours they worked. We don't have that information, so we can't calculate an exact hourly rate. However, we can make an estimate by assuming they worked a standard 8-hour day. In that case, their hourly rate would be:

Hourly rate in 2016 = (earnings in 2016) ÷ (hours worked in 2016)

= ($750) ÷ (8 hours per day)

= $93.75 per hour (rounded to the nearest cent)

In 2021, workers earned:

Earnings = (units produced) x (rate per unit) = (3500) x ($0.35) = $1225

Using the same assumption of an 8-hour day, their hourly rate in 2021 would be:

Hourly rate in 2021 = (earnings in 2021) ÷ (hours worked in 2021)

= ($1225) ÷ (8 hours per day)

= $153.13 per hour (rounded to the nearest cent)

In 2026, workers will earn:

Earnings = (units produced) x (rate per unit) = (4000) x ($0.40) = $1600

Using the same assumption of an 8-hour day, their hourly rate in 2026 would be:

Hourly rate in 2026 = (earnings in 2026) ÷ (hours worked in 2026)

= ($1600) ÷ (8 hours per day)

= $200.00 per hour (rounded to the nearest cent)