Question
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.
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