Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Now that Smith has opened his spare parts retail shop, J.S. Auto Spare Parts, he needs to hire three more full-time employees, a cashier, an

Now that Smith has opened his spare parts retail shop, J.S. Auto Spare Parts, he needs to hire three more full-time employees, a cashier, an inventory clerk and a salesperson. To attract good workers, Smith presumes that he will be paying the cashier $8 per hour, the inventory clerk $10 per hour and the salesperson a fixed salary of $480 per week plus 8% of all sales over $2,500 as commission. Smith assumes that average sales of the new salesperson will be $7,000 during any given week. He also decides that he will contribute 50% of the $3,000 annual health insurance premium on each employees behalf. Smith needs to find out how much to include in the annual budget for each employee.

Based on a standard workweek, calculate the annual cost to J.S. Auto Spare Parts for each of the three employees.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Auditing IT Systems Volume 1

Authors: Young-Woon Min

2nd Edition

978-1257124084

More Books

Students also viewed these Accounting questions

Question

=+ (a) Show that P(U"_[X ,, = j i.o.]) =0 for all i.

Answered: 1 week ago