Question

An entry level web developer's annual pay is $55,640 based on 52 weeks per year. Due to the economy, his company is having to cut back on the number of weeks that it employs its web developers. If the firm cuts the work year to 49 weeks but keeps the same rate of pay, how much should the web developer expect his annual pay to decrease? Round your answer to the nearest dollar.

Answer 1

`Reduction = \$3300`

Explanation:

Given

`Pay\ for\ 52\ weeks = \$55,640`

Required

Determine the reduction when paid is reduced to 49 weeks

First, we need to determine the weekly pay

`Weekly\ Pay = (\$55,640)/(52)`

`Weekly\ Pay = \$1070`

Next, is to determine the pay for 49 weeks;

`Pay = Weekly\ Pay * 49`

`Pay = \$1070 * 49`

`Pay = \$52430`

Subtract the 49 week pay from 52 weeks pay to get the payment reduction;

`Reduction = \$55640 - \$52340`

`Reduction = \$3300`