Answer:
a. The lowest wage that the clothing store can pay to hire five sales clerks is $1,728 per week.
b. The wage rate the clothing store must pay to attract five sales clerks rises by $275 per week.
Explanation:
a. The lowest wage that the clothing store can pay to hire five sales clerks is $ _____ per week.
Note: See part a of the attached excel file for the list sorted by Minimum wage (Dollars per week) from the lowest to the highest.
From part a of the attached excel, the first 5 people with the lowest wages are Tim, Eileen, Kate, Clancy and Hubert. And the sum of the wages is as follows:
Weekly wage of five sales clerk withe lowest wages = $306 + $328 + $350 + $361 + $383 = $1,728
Therefore, the lowest wage that the clothing store can pay to hire five sales clerks is $1,728 per week.
b. Suppose the head of the clothing store has a preference for tall employees because he thinks it will increase revenue, and thus, he imposes the restriction that all sales clerks hired must be at least 67 inches in height. Under this new regulation, the wage rate the clothing store must pay to attract five sales clerks rises by $ _____per week.
Note: See part b of the attached excel file for the list sorted by Gender Height(Inches) from the highest to the lowest.
From part b of the attached excel, there are 6 people that qualify but Antonio is excluded (because his wage is the highest) in order to obtain the lowest total minimum wage of five people that qualify .
Therefore, we are left with Manuel, Clancy, Hubert, Kate and Valerie.
Total wage of those selected from those with at least 67 inches in height = $427 + $361 + $383 + $350 + $482 = $2003
Therefore, we have:
Increase in wage per week = Total wage of those selected from those with at least 67 inches in height - Weekly wage of five sales clerk withe lowest wages = $2,003 - $1,728 = $275
