Question

A local company employs a varying number of employees each year, based on its needs. The labor costs for the company include a fixed cost of $32,782.00 each year, and $31,009.00 for each person employed for the year. For the next year, the company projects that labor costs will total $3,133,682.00. How many people does the company intend to employ next year?

Answer 1

Let's start by using the formula for the total labor cost:

Total labor cost = Fixed cost + (Number of employees x Cost per employee)

We know that the fixed cost is $32,782.00, and the cost per employee is $31,009.00. Let's represent the number of employees with the variable "x". So we have:

$3,133,682.00 = $32,782.00 + (x * $31,009.00)

Simplifying the equation:

$3,133,682.00 - $32,782.00 = x * $31,009.00

$3,100,900.00 = x * $31,009.00

x = $3,100,900.00 / $31,009.00

x ≈ 100

Therefore, the company intends to employ approximately 100 people next year.