Josh has decided to take a course at the local community college that could help him get a promotion at work. The course begins at 5pm and goes until 9pm on monday nights. Josh normally works until 5pm each day, but because of the drive time he will leave work at 3pm on class days. He earns $18.50 per hour. His employer contributes 10% of Josh's gross earnings to a 401k. If the class meets 16 times, what is Josh's total oportunity cost for the class?
a. none
b. $800
c. $592.00
d. $651.20
800
To find Josh's total opportunity cost for the class, we need to calculate the amount of money he would have earned if he had been working instead.
First, let's calculate Josh's hourly wage for the 16 class days. Since he earns $18.50 per hour and attends class from 5pm to 9pm (4 hours), his total pay per class day is $18.50/hour * 4 hours = $74.
Next, we need to calculate the number of class days in which Josh leaves work early. Since he leaves work at 3pm on class days, he will leave early for 16 class days.
Now, let's calculate the number of hours Josh would have worked if he hadn't left early for class. Since he normally works until 5pm, but leaves at 3pm on class days, he misses 2 hours of work for 16 class days. Therefore, the total number of missed hours is 2 hours/day * 16 days = 32 hours.
Now, let's calculate the total amount of money Josh would have earned if he hadn't left early for class. Since he earns $18.50 per hour and missed 32 hours of work, his total missed earnings are $18.50/hour * 32 hours = $592.
However, we also need to consider the 401k contribution by Josh's employer. Since the employer contributes 10% of Josh's gross earnings, the 401k contribution is 10% * $592 = $59.20.
Adding the missed earnings and the 401k contribution, Josh's total opportunity cost for the class is $592 + $59.20 = $651.20
Therefore, the correct answer is d. $651.20.