Question

an entry level accountant’s annual pay is $48,880 based on 52 weeks per year. due to the economy, his company is having to cut back on the number of weeks that it employs it’s accountants. If the firm cuts the work year to 50 weeks but keeps the same rate of pay, how much should the accountant expect his annual pay to decrease? round your answer to the nearest dollar.

Answer 1

Answer:

Explanation:

Given:

Annual pay = $48,880 based on 52 weeks per year

To find the new annual pay if the firm cuts the work year to 50 weeks, we use ratio:

Let:

x= new annual pay

$\begin{gathered} \frac{48880}{52}=\frac{x}{50} \\ \text{Simplify and rearrange} \\ x=\frac{48880(50)}{52} \\ \text{Calculate} \\ x=47000 \end{gathered}$

The annual pay would decrease by:

Decrease = 48,880-47000 = $1,880

Therefore, the annual pay decrease is $1,880.