The federal minimum wage is $7.25 per hour.
a. How much will a worker at McDonald's make in a year if he or she works 8 hours a day, 5 days a week, 52 weeks a year earning the minimum wage?
b. USA Today reported that McDonald's gave its Chief Executive Officer (CEO) Don THompson a $4.1 million pay raise. His new compensation package is worth #13.8 million per year. How much will the CEO make per hour if he works 8 hours a day, 5 days a week, 52 weeks a year?
a. 7.25 * 8 * 5 * 52 = x
b. x * 8 * 5 * 52 = 13,800,000
In both cases, solve for x and express in terms of dollars.
15080
a. To calculate the annual income of a worker at McDonald's earning the minimum wage, we need to multiply the hourly wage by the number of hours worked in a year.
The worker earns $7.25 per hour, works 8 hours a day, 5 days a week, and 52 weeks a year.
Step 1: Calculate the number of hours worked in a year:
8 hours/day * 5 days/week * 52 weeks/year = 2080 hours/year
Step 2: Multiply the number of hours worked in a year by the hourly wage:
$7.25/hour * 2080 hours/year = $15,080/year
Therefore, a worker at McDonald's, working 8 hours a day, 5 days a week, 52 weeks a year, earning the minimum wage, will make $15,080 per year.
b. To calculate the CEO's hourly rate, we need to divide his annual compensation by the number of hours worked in a year.
The CEO's compensation package is worth $13.8 million per year, and he works 8 hours a day, 5 days a week, and 52 weeks a year.
Step 1: Calculate the number of hours worked in a year:
8 hours/day * 5 days/week * 52 weeks/year = 2080 hours/year
Step 2: Divide the annual compensation by the number of hours worked in a year:
$13.8 million/year ÷ 2080 hours/year = $6,634.62/hour
Therefore, the CEO of McDonald's, working 8 hours a day, 5 days a week, 52 weeks a year, will make approximately $6,634.62 per hour.