Assume that Rebeli Press needs secretarial help. It can hire its own secretary, or it can pay a temporary help agency to supply a secretary. If it hires its own secretary, it will pay an annual salary of $35,000.

Assuming a normal work year is about 2,000 hours, this is a pay of about $17.50 per hour. It will pay $6,000 towards health insurance. It will also pay the following taxes:

A. Social security tax of 6.2%

B. Medicare tax of 1.45%

C. State and federal unemployment taxes of 6% of the first $7,000 in wages.

D. Compute the payroll taxes that will be applicable for a full year.

E. Compute the total cost of hiring the secretary as an employee, including payroll taxes, salary, and medical benefits.

F. Compute the approximate cost per hour, using a 2,000 hour year.

G. Assume that the company could obtain a temporary secretary, through a temporary agency, at a cost of $21 per hour. Should the company hire its own employee, or obtain help through the temporary agency?

Explain your answer.