Let's go through the details step by step to determine which payment option to recommend:
1. Data Provided:
- Salaried employee makes [tex]$78,000 per year.
- Hourly employee gets $[/tex]26 per hour regularly and [tex]$39 per hour for overtime (hours over 40 per week).
- Hours worked in a week: 0 (Sun), 8 (Mon), 8.5 (Tues), 9.5 (Wed), 10 (Thurs), 8 (Fri), 3 (Sat).
2. Calculating Total Hours Worked in the Week:
The total hours worked by the employee in the week is:
\[
0 + 8 + 8.5 + 9.5 + 10 + 8 + 3 = 47 \text{ hours}
\]
3. Determining Regular and Overtime Hours:
- Regular hours are capped at 40 hours per week.
- Overtime hours are any hours worked beyond 40 hours.
- Hence, regular hours = 40 and overtime hours = 47 - 40 = 7 hours.
4. Weekly Salary for Salaried Employee:
The annual salary for the salaried employee is $[/tex]78,000.
To find the weekly salary:
[tex]\[
\text{Weekly Salary} = \frac{\text{\$78,000}}{52} = \$1500
\][/tex]
5. Weekly Salary for Hourly Employee:
- Regular pay for 40 hours:
[tex]\[
40 \text{ hours} \times \$26/\text{hour} = \$1040
\][/tex]
- Overtime pay for 7 hours:
[tex]\[
7 \text{ hours} \times \$39/\text{hour} = \$273
\][/tex]
- Total weekly salary for the hourly employee:
[tex]\[
1040 + 273 = \$1313
\][/tex]
6. Comparison of Weekly Earnings:
- Weekly earnings for the salaried employee: [tex]$1500
- Weekly earnings for the hourly employee: $[/tex]1313
- Since [tex]$1500 > $[/tex]1313, the salaried employee earns more weekly.
Therefore, the recommended payment option for a new employee, based on the weekly earnings comparison, would be:
c. Salaried pay. Salaried employees make more per week than hourly employees.
