A Local Business Owner Is Considering Adding Another Employee to His

question 83

Essay

A local business owner is considering adding another employee to his staff in an effort to increase the number of hours the store is open per day.
a. If the employee will cost the owner $4,000 per month and the store takes in $50/hour in revenue with variable costs of $15/hour, how many hours must the new employee work for the owner to break even?
b. The employee again costs $4000 and has agreed to work 120 hours. If variable costs remain at $15/hour and revenue is uncertain with a 40% chance of being $40/hour, 35% chance of being $20/hour, and 25% chance of being $35/hour should the owner hire the employee?

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Definitions:

Fredrickson and Roberts

Scholars known for their work in psychology and feminist theory, particularly for the objectification theory which examines the effects of societal objectification on women.

Prioritize Appearances

Giving primary importance to the way things look or seem, often at the expense of deeper values or truths.

Objectify

The act of treating a person or a group of people as an object or commodity, often reducing human beings to their physical attributes or sexual appeal.

Female Politicians

Female politicians are women who are actively engaged in politics and hold or aspire to hold a position in government or political organizations.