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Q: get percentage and pay based on hours worked ( Answered ,   0 Comments )
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 Subject: get percentage and pay based on hours worked Category: Reference, Education and News > Homework Help Asked by: oemoeniaoe-ga List Price: \$9.50 Posted: 02 Dec 2005 00:15 PST Expires: 01 Jan 2006 00:15 PST Question ID: 600439
 ```To clarify the problem I will use a descriptive method... There are 4 people working in a company, (Moe, Joe, Jack, John). The amount of the job they are doing is \$ 3,700. The deadline is in 7 days at a rate of 8 hours a day, the job will be completed if all workers do their 56 hours in that week. (224 hrs in total) The pay they will get will be based on the amount of hours they spend working on, but the problem is that some of them will be working more hours than others, for instance: Jack worked 80 hrs Moe worked 50 hrs John worked 90 hrs Joe worked 60 hrs ----Total-----280hrs The problem is that there is a difference of 56 hrs extra (280-224) How can you get the right percentages for events like these where the amount exceeds the number first given? How can they have a fair share of the money based on the amount of hours worked? Please describe the solution to this problem on how to obtain the percentage and the amounts for each employee based on the hours worked?``` Request for Question Clarification by livioflores-ga on 02 Dec 2005 04:51 PST ```I think that the problem can be managed in the normal way. You can assume that the initial forecast for the hours worked failed due some unexpected problems (this is very common in real life situations), so to get a fair share of the money based on the amount of hours worked just use the average weight of the hours worked by each worker: Jack's percentage of hours worked = 100 * hours worked by Jack/280 = = 100 * 80/280 = 28.57% Jack's Payment = 0.2857 * \$3700 = \$1057.09 etc. Note: in this case the company assumes the loss of the opportunity cost (the company lost the opportunity to use 56 hours of workers' job to do other business). The following is more tricky, but in very rare situations the company can punish the team for the extra time delay, claiming an opportunity cost loss. In this case a solution could be the following: Each worker's percentage of hours worked is calculated in the same way than in the first case. Now calculate the opportunity cos for the company: For 224 hours of work they get \$3700, then for 56 hours the proportional income is: Op. Cost = \$3700 * 56/224 = \$925 This is the amount that the team must pay as mulct. Now the total payment results in \$3700 - \$925 = \$2775 Use the above amount to calculate the actual payment for each employee: Jack's Payment = 0.2857 * \$2775 = \$792.82 etc. Please let me know if this is the answer that are you looking for or if I misunderstood the problem. In the first case I will claim the prize by posting this in the answer box, in the second case I will continue researching. Regards, livioflores-ga``` Clarification of Question by oemoeniaoe-ga on 02 Dec 2005 07:33 PST ```please specify the problem with the tricky solution... I understand the first solution, but I want to obtain more information about how to get the right amounts for the 2nd solution you gave me... (3700-925 = 2775) please complete the amounts for all four members, based on the 2nd solution then you can caim the prize, Thank you for your help...```
 ```Hi!! Thank you so much for giving me the opportunity to answer your question. In this case the company punished the team for the extra time delay, claiming an opportunity cost loss (the company lost the opportunity to use 56 hours of workers' job to do other business).. In this situation the solution could be the following: Each worker's percentage of hours worked is calculated based on the amount of hours worked by him. To get the proportions just use the average weight of the hours worked by each worker: Jack's percentage of hours worked = 100 * hours worked by Jack/280 = = 100 * 80/280 = 28.57% Moe's percentage of hours worked = 100 * hours worked by Moe/280 = = 100 * 50/280 = 17.86% John's percentage of hours worked = 100 * hours worked by John/280 = = 100 * 90/280 = 32.14% Joe's percentage of hours worked = 100 * hours worked by Joe/280 = = 100 * 60/280 = 21.43% Now calculate the opportunity cos for the company: For 224 hours of work they get \$3700, then for 56 hours the proportional income (lost by the company due the delay) is: Op. Cost = \$3700 * 56/224 = \$925 This is the amount that the team must pay as mulct. Now the total net income for the team is: \$3700 - \$925 = \$2775 Now we can use the above amount to calculate the actual payment for each employee: Jack's Payment = 0.2857 * \$2775 = \$792.82 Moe's Payment = 0.1786 * \$2775 = \$495.62 John's Payment = 0.3214 * \$2775 = \$891.88 Joe's Payment = 0.2143 * \$2775 = \$594.68 I hope this helps you. Feel free to request for a clarification if you need it. Regards, livioflores-ga```