Jack's Convenience Store is open for 20 hours a day, Monday through Saturday. There is always one employee in the store. The sto
re employs three full- time employees , who work 40 hours per week and earn $9 per hour. The store also spends $ 200 per week on each full- time employee's benefits. Their labor contract requires that they earn double- time for any overtime work and that any employee who works 30 hours or more per week be given full benefits . The store is considering expanding its hours to 24 hours per day, Monday through Saturday, and 16 hours on Sunday
Answer: Hiring a new employee to cover the added hours will cost $160 less than paying overtime to the three present employees.
Explanation:
Find the cost of paying the employees at the present hours, 120 hours per week at $9 per hour plus benefits. That's $360 plus $200 per employee per week. $560
If the store is open an additional 40 hours, the overtime at $18 per hour will cost $720.
