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The table below shows the typical hours worked by employees at a company. A salaried employee makes $\$50,000$ per year. Hourly employees get paid \$20 per hour, but get \$30 per hour for each hour over 40 hours.




Sun.		Mon.Tues.Wed.Thurs.Fri.Sat.

0		8899.57.54






Which of the payment options would you recommend to a new employee?


AEither one. Hourly and salaried employees earn the same amount per week.
BHourly pay. Hourly employees make more per week than salaried employees.
CSalaried pay. Salaried employees make more per week than hourly employees.
DThere is not enough information given to compare weekly earnings.

Verified Answer :

  • Calculate the weekly salary: \(\$50,000 \div 52 \approx \$961.54\).
  • Calculate the total weekly hours: \(0 + 8 + 8 + 9 + 9.5 + 7.5 + 4 = 46\) hours.
  • Calculate the weekly hourly earnings including overtime: \((40 \times \$20) + (6 \times \$30) = \$800 + \$180 = \$980\).
  • Compare the earnings: \(\$980 > \$961.54\), so choose the hourly pay. The correct option is \(\boxed{b}\).

Explanation

  1. Calculating Weekly Salaried Pay

First, we determine the weekly income for the salaried position. Assuming the employee works 52 weeks in a year, the weekly pay is calculated by dividing the annual salary of \(\$50,000\) by 52.
\[ \text{Weekly Salaried Pay} = \frac{50000}{52} \approx 961.54 \]
So, a salaried employee earns approximately \(\$961.54\) per week.

  1. Calculating Weekly Hourly Pay

Next, we calculate the total number of hours worked in a week based on the provided table: 0 hours on Sunday, 8 on Monday, 8 on Tuesday, 9 on Wednesday, 9.5 on Thursday, 7.5 on Friday, and 4 on Saturday.
\[ \text{Total Hours} = 0 + 8 + 8 + 9 + 9.5 + 7.5 + 4 = 46 \text{ hours} \]
Since the employee works 46 hours, we separate the hours into regular time (the first 40 hours) and overtime (the remaining 6 hours). The regular pay rate is \(\$20\) per hour, and the overtime pay rate is \(\$30\) per hour.
\[ \text{Weekly Hourly Pay} = (40 \times 20) + ((46 - 40) \times 30) = 800 + (6 \times 30) = 800 + 180 = 980 \]
The hourly employee earns \(\$980.00\) per week.

  1. Comparison and Conclusion

Finally, we compare the two earnings. The salaried employee earns \(\$961.54\) per week, while the hourly employee earns \(\$980.00\) per week. Since \(\$980.00 > \$961.54\), the hourly pay option results in more money for the employee. Thus, we recommend the hourly pay option. The correct answer is b.

Examples

Understanding how to calculate regular vs. overtime pay is a vital life skill for anyone entering the workforce. By knowing how to break down your hours and apply different pay rates, you can effectively evaluate job offers and ensure you are being compensated fairly for your time. For example, if you are offered a choice between a base salary and an hourly rate, performing this exact analysis helps you determine which option maximizes your weekly earnings.

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