To determine which payment option is more advantageous, we need to compare the weekly earnings of an hourly employee versus a salaried employee based on the given data.
First, let's summarize the hours worked each day in a week for an hourly employee:
- Sunday: 0 hours
- Monday: 10 hours
- Tuesday: 8 hours
- Wednesday: 8 hours
- Thursday: 7 hours
- Friday: 6.5 hours
- Saturday: 4.5 hours
Now, adding these hours gives us the total hours worked in the week:
[tex]\[ 0 + 10 + 8 + 8 + 7 + 6.5 + 4.5 = 44 \text{ hours} \][/tex]
Next, we determine the breakdown of these 44 hours into regular and overtime hours:
- Regular hours: The maximum number of regular hours is 40.
- Overtime hours: Any hours worked beyond 40 hours.
From the total of 44 hours:
- Regular hours = 40 hours
- Overtime hours = 44 - 40 = 4 hours
Calculating the weekly pay for an hourly employee:
- Regular hourly rate: [tex]$25 per hour for up to 40 hours.
- Overtime rate: $[/tex]37.50 per hour for hours beyond 40.
The weekly earnings for an hourly employee are calculated as follows:
[tex]\[ \text{Weekly pay (hourly)} = (40 \text{ hours} \times \$25) + (4 \text{ hours} \times \$37.50) = \$1000 + \$150 = \$1150 \][/tex]
Now, calculate the weekly earnings for a salaried employee:
- A salaried employee makes [tex]$67,000 per year.
- There are 52 weeks in a year, so the weekly salary is:
\[ \text{Weekly pay (salaried)} = \frac{\$[/tex]67,000}{52} \approx \[tex]$1288.46 \]
Comparing the two:
- Weekly pay (hourly): $[/tex]1150
- Weekly pay (salaried): $1288.46
It is clear that salaried employees make more per week than hourly employees based on the given data.
Therefore, the best recommendation for a new employee would be:
[tex]\[ \text{c. Salaried pay. Salaried employees make more per week than hourly employees.} \][/tex]
