kasey works in a hospital as an hourly employee. she works a minimum of forty hours a week, frequently more…

kasey works in a hospital as an hourly employee. she works a minimum of forty hours a week, frequently more, and gets paid $15.00 per hour plus double pay for overtime. her supervisor recently offered her a new job with a set salary of $600. she thinks that the hourly rate is better income than the salary. use estimation to verify which option provides the most income potential and why. a) the hourly rate gives you the most income for a 40 - hour week. b) the hourly rate gives you the most income since you work overtime. c) the salary rate gives you the most income for a 40 - hour week. d) there isnt any difference between the two rates.
Answer
Explanation:
Step1: Calculate income for hourly rate (40 - hour week)
Kasey's hourly rate is $15, and for overtime (more than 40 hours), she gets double pay ($30 per hour). But first, for a 40 - hour week without overtime, income from hourly rate: (40\times15 = 600) dollars.
Step2: Calculate income for set salary
The set salary is $600 for a week (assuming a week's work, likely 40 hours equivalent as a base, but since she works overtime frequently with hourly rate, let's analyze. For the hourly rate, when she works more than 40 hours, say 41 hours: income from hourly rate is (40\times15+1\times30=600 + 30=630) dollars. For the set salary of $600, even if she works overtime, she still gets $600. So when she works overtime (which she frequently does), the hourly rate (with overtime pay) gives more income.
Step3: Analyze the options
- Option A: For a 40 - hour week, both the hourly rate (40*15 = 600) and the set salary ($600) give the same income for 40 hours. So A is wrong.
- Option B: Since she works overtime frequently, with the hourly rate she gets paid 15 for regular hours and 30 for overtime. The set salary is a fixed $600. So when she works more than 40 hours, her income from hourly rate (with overtime) will be more than $600. So the hourly rate (with overtime pay) gives more income because she works overtime. This option is correct.
- Option C: For a 40 - hour week, both give $600. And if she works overtime, hourly rate is better. So C is wrong.
- Option D: There is a difference when she works overtime, so D is wrong.