Question
A survey of restaurants found the following regarding the average pay of its workers -Dishwashers are paid $12.50 per hour. -Waitstaff arepaid$10.00 per hour and
A survey of restaurants found the following regarding the average pay of its workers
-Dishwashers are paid $12.50 per hour.
-Waitstaff arepaid$10.00 per hour and receive tips.
-Managers receive $35,000 per year plus 1.5% of annual profits.
(1) Is it more profitable for the restaurant to pay the dishwasher by the number of dishes washed instead of by an hourly wage? Explain why or why not.
(2) Is it more profitable for the restaurant to pay waitstaff just an hourly salary of $10.00 and discontinue the practice of tipping? Explain why or why not.
(3) Is it more profitabler for the restaurant to just pay the manager $35,000 per year and discontinue the practice of profit sharing? Explain why or why not.
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