haron is currently not employed outside the home and has two children, one preschool age and one in the second grade. Before deciding if she shold take a job, Sharon estimated her job-related expenses as follows: perschool daycare--$175 per week; after-school program--$75 per week; transportation--$0.35 per mile; clothing expenses--$25 per week; and extra expenses--$50 per week. During vacations, Sharon will not incur any job-related expenses; she accounted for this fact in her budget.Sharon is considering the following two positions.
Job 1: Donivan Tech
Donivan Tech offering Sharing a full-time job management position wit ha contract that offers a yearly salary of $50,310 and 3 week paid vacation. Since a salaried position does not pay an hourly rate, Sharon will not be work hours over 40 hours per week. Sharon estimpates that she will work 45 hours per week when she considers travel time for the 45-mile round trip commute to work, and the extra work commitment required for managers. Federal and state taxes, as well as our taxable income brackets, often vary, but Sharon estimates her payroll deductions will be 17% of her gross salary.
Job 2 J & R Financial Group
A part-time position as a Personal Assistant Manager was offered to Sharon by J & R Financial. This position requires a work schedule of 6 hours per day, 5 days a week, pays an hourly rate $20.50, and includes 2 weeks paid vacation. Sharon determined that the round-trip commute to work is only 5 miles, and therefore will not increase her workday significantly. Since the workdays or shorter, after-school daycare for her child in second grade will reduced to $25 per week, and daycare for her preschool child will decrease to $150 a week. Sharon estimates that the reduced work schedule will also decrease her extra expenses to $25 per week and payroll deductions to 12% of her gross salary, but it will not effect her clothing expenses.
1. Donivan Tech:
Gross earnings per week:________________________________
Hourly wage for a 45-hours work week:_______________________
2. J & R Financial Group:
Gross earnings per week:__________________________________
Yearly gross earnings:_______________________________…
3.Based on Sharon's gross income, _________________ pays the higher hourly rate. The higher rate is ________________ per hour higher.
4. (a) Calculate yearly job-related expenses for position at Donivan Tech. Be sure to include payroll deductions.
(b) Job-related expenses would account for what percentage of Sharon's gross yearly earnings.
5. (a) Calculate the yearly job-related expenses for position J & R Financial Group. Be sure to include payroll deductions.
(b) Job related-expenses would account for what percentage of Sharon's gross yearly earnings?
6. For each of the positions, what is Sharon's net employment income per year? Per week? Per hour? (a) Donivan Tech (b) J & R Financial Group
7. Which job do you think Sharon should take? Why?