Question

An entry level sales analyst's annual pay is $46,228 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 its sales analysts. If the firm cuts the work year to 48 weeks but keeps the same rate of pay, how much should the sales analyst expect his annual pay to decrease? Round your answer to the nearest dollar.

Answer 1

so our analyst is making 46,228 dollars

we need to find out how much money he makes in a week

we will divide his income per year

46,228 / 52=889

so he makes 889 dollars per week

is that clear so far?

the company is not doing well so instead of working 52 weeks, he will work 48 weeks

we need to find out how much money he will make in 48 weeks

889 x 48=42,672

his salary will decrease 46,228-42,672=3,556 dollars

we could resolve the problem also by multiplying the 4 weeks cut (52-48=4)

and multiply 889 x 4=3556

so we got the same answer