A Local Business Owner Is Considering Adding Another Employee to His

question 185

Short Answer

A local business owner is considering adding another employee to his staff in an effort to increase the number of hours that the store is open per day. 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?

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Definitions:

Group of People

A collection of individuals who are together either by choice or accidentally, sharing or engaging in common activities or goals.

Negative Attitude

A pattern of thinking where individuals expect the worst and see the downside in situations.

Social Perception

The process through which we form impressions of and make inferences about other people and social situations.

Inferences

The process of drawing logical conclusions from available evidence and reasoning.