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?

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.

Question

03-11-2026
Mathematics

Answered

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?

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 :

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GinnyAnswer GinnyAnswer · Answer 1 · 2026-11-03T16:58:50-05:00

Calculate the weekly salary by dividing the annual salary of $\$67,000$ by $52$ weeks, resulting in approximately $\$1,288.46$.
Calculate the total weekly hours as $44$ hours and compute the hourly earnings including overtime: $(40 \times \$25) + (4 \times \$37.50) = \$1,150.00$.
Compare the two results: $\$1,288.46 > \$1,150.00$.
Conclude that the salaried option is better, which corresponds to option (c). The final answer is $\boxed{c}$.

Explanation

Calculate Salaried Employee Weekly Pay

To determine which payment option is better, we first calculate the weekly earnings for a salaried employee. Given an annual salary of $\$67,000$ and assuming a standard year of $52$ weeks, the weekly salary is $\frac{\$67,000}{52} \approx \$1,288.46$.

Calculate Hourly Employee Weekly Pay

Next, we calculate the weekly hours worked by summing the daily hours:
$0 + 10 + 8 + 8 + 7 + 6.5 + 4.5 = 44 \text{ hours}$.
Since the employee worked $44$ hours, they qualify for overtime pay for the hours exceeding $40$.
Regular pay for $40$ hours is $40 \times \$25 = \$1,000$.
Overtime pay for $4$ hours is $4 \times \$37.50 = \$150$.
Total weekly hourly earnings are $\$1,000 + \$150 = \$1,150.00$.

Comparison and Recommendation

Comparing the two amounts:

Salaried weekly earnings: $\approx \$1,288.46$
Hourly weekly earnings: $\$1,150.00$

Since $\$1,288.46 > \$1,150.00$, the salaried employee earns more per week than the hourly employee. Therefore, the salaried pay option is more beneficial. The correct choice is option (c).

Examples

Understanding how to compare different compensation models, such as annual salaries versus hourly wages including overtime, is crucial for financial literacy. For example, when deciding between job offers, one must calculate the effective weekly or monthly income based on expected working hours and contractual terms. This allows individuals to make informed decisions that align with their financial goals, ensuring they receive the best possible compensation for their time and effort.