To solve this problem, we need to compare the weekly earnings of a salaried employee with that of an hourly employee, considering the given work schedule and pay rates.
Step-by-Step Solution:
1. Calculate Salaried Employee's Weekly Salary:
- A salaried employee's annual salary is [tex]$67,000.
- To find the weekly salary, we divide the annual salary by the number of weeks in a year (52):
\[
\text{Weekly salary} = \frac{67,000}{52} = \$[/tex]1,288.46
\]
2. Calculate Total Weekly Hours Worked by Hourly Employee:
- According to the schedule: 0 hours on Sunday, 10 hours on Monday, 8 hours on Tuesday, 8 hours on Wednesday, 7 hours on Thursday, 6.5 hours on Friday, and 4.5 hours on Saturday.
- Summing these hours:
[tex]\[
\text{Total hours} = 0 + 10 + 8 + 8 + 7 + 6.5 + 4.5 = 44 \text{ hours}
\][/tex]
3. Determine Regular and Overtime Hours for Hourly Employee:
- Regular hours are up to 40 hours per week.
- Overtime hours are any hours worked beyond 40 hours.
- Regular hours: [tex]\(\min(44, 40) = 40 \text{ hours}\)[/tex]
- Overtime hours: [tex]\(\max(44 - 40, 0) = 4 \text{ hours}\)[/tex]
4. Calculate Hourly Employee's Weekly Earnings:
- Regular pay rate: [tex]$25 per hour.
- Overtime pay rate: $[/tex]37.50 per hour.
- Earnings from regular hours:
[tex]\[
\text{Regular earnings} = 40 \times \$25 = \$1,000
\][/tex]
- Earnings from overtime hours:
[tex]\[
\text{Overtime earnings} = 4 \times \$37.50 = \$150
\][/tex]
- Total earnings:
[tex]\[
\text{Total earnings} = \$1,000 + \$150 = \$1,150
\][/tex]
5. Comparison of Weekly Earnings:
- Weekly salary of salaried employee: \[tex]$1,288.46.
- Weekly earnings of hourly employee: \$[/tex]1,150.
- Since the weekly salary of the salaried employee (\[tex]$1,288.46) is greater than the weekly earnings of the hourly employee (\$[/tex]1,150), the salaried option is more beneficial financially.
Recommendation:
c. Salaried pay. Salaried employees make more per week than hourly employees.
Thus, the best recommendation to a new employee would be the salaried option since it results in higher weekly earnings compared to the hourly option.
