Answer to Question #312650 in Microeconomics for lydia

Question

F. Frans is the workshop supervisor of NBW. She is paid a fixed salary monthly of N$10000. To keep her motivated she is entitled to an annual bonus of N$9000 to her pension fund annually. She works 9 hours per day from Monday to Friday every week. She is also entitled to 28 days paid vacation leave. There are 12 public holidays in the year for which 9 fall on weekends. Assume a 365 days year.

Required:

Using information relating to F. Frans compute Frans s hourly recovery tariff per hour.

Answer 1

The year has 365 days

$\frac{365}{7} =$ 52 weeks and 1 day

Works 5 days every week

Therefore $(52× 5)+1 = 261$ days

The 28 vacation leave days are accounted above.

If Frans works 9 hours a day

The the total hours annually will be

$261×9 =2349$

However the public holidays will be deducted since there is no information on how Frans is remunerated.

Thus $(261-3)×9 = 2322$ hours

The hourly recovery tariff is

$\frac{Total. pay}{total. hours}$

Total pay = $10000×12 = 120000 + 9000$ = 129000

Therefore hourly recovery tariff is;

$\frac{129000}{2322}= N 55.556$