This is one of the test questions for a company placement. I don't know about you guys but I'm not good in math; it took me awhile and I still got it wrong ...If you can solve it,. .. if not then you're like me I will post the answer later on.

Suppose you start at $32,000 per year (about $16/hr.), receive $3,536 in company paid insurance benefits, receive 32% of your base in 401K/Profit Sharing/ESOP benefits, and cost the company 8% of your base in FICA taxes. Suppose also that you are trained for 4 months, plus get 7 holidays and 10 days total of sick leave and vacation your first year. Assuming 176 work hours per month and 8 hours per day; in your first year, what is your cost to the company per hour that YOU ARE AVAILABLE TO HELP A CUSTOMER?


Answer posted below..

 

Is the 4 months of training 12 or 13 weeks?

 

ask Magician he knows everything.

 

You have a total of 12 months x 176 hours per month, or 2112 hours per year.

From that, you lose 4 months of training (4 x 176 hours = 704 hours), 7 x 8 (56) hours for holidays and 10 x 8 (80) hours for sick days.

So, 2112 - 704 - 56 - 80 = 1272 hours remaining in the year.

Now, your cost to the company is:

$32000 + 3536 + (0.32)(32000) + (0.08)(32000)
= $35536 + 10240 + 2560
= $48336 total cost to company

Divide dollars by hours and you get your answer.

$48336 / 1272 hrs = $38 / hr

EDIT: I figured 2112 hour per year, then proceeded to put 2080 in my "hours" calculation. Updated to correct that error.

 

Johnathan you are so cute when you are smart.

 

$38/hr?

 

here's my shoddy work

32,000 + 3,536 = 35,536
32,000 * .32 = 10,240
35,536 + 10,240 = 45,776
32,000 * .08 = 2,560
45,776 + 2,560 = 48,336

total company cost for one year = $48,336

176 hours per month * 12 months per year = 2,112 hours per year

12 months total working - 4 months training (unavailable to help customer) = 8 months available to customer

8 months * 176 hours per month = 1,408 available hours per year

assuming you take all 7 holidays and 10 days of sick leave...

( 7 days + 10 days ) * 8 hours per day = 136 hours (unavailable to help customer)

1,408 total available hours per year - 136 unvailable hours (due to holidays and sick leave) = 1,272 hours

$48,336 total company cost per year / 1,272 available hours to help a customer = $38/hour

 

I don't show my work but I got $38/hr

 

 

the number $38 flashed in my brain when I saw the question.