Answer :
To solve this problem, let's break down the given information and the changes that occur due to the new minimum wage:
1. Current Situation:
- The company produces 100 toys each day.
- Workers earn [tex]$15 per hour.
2. Change in Minimum Wage:
- The government sets a new minimum wage at $[/tex]24 per hour.
3. Impact of New Minimum Wage:
- Since the wage per hour increases from [tex]$15 to $[/tex]24, it becomes more expensive for the company to pay the same number of employees.
4. Determine the Effect:
- We assume that the company's total payroll budget remains the same as when they were paying [tex]$15 per hour. To keep the budget constant while wages increase, the company will employ fewer people.
5. Calculating Employee Retention:
- We need to calculate the factor by which the wage has increased. The new wage is $[/tex]24, and the old wage was $15.
- To find out how many workers the company can afford under the new wage structure, we calculate the ratio of the new minimum wage to the old wage:
[tex]\[
\text{Wage Ratio} = \frac{24}{15}
\][/tex]
6. Calculate New Number of Employees:
- Initially, assume there are 100 workers. To maintain the same total wage expense, the company can only keep a fraction of these workers:
[tex]\[
\text{New Number of Employees} = \frac{100}{\text{Wage Ratio}}
\][/tex]
7. Number of Employees Laid Off:
- The difference between the original number of employees and the number of employees they can afford gives the number laid off:
[tex]\[
\text{Employees Laid Off} = 100 - \text{New Number of Employees}
\][/tex]
After performing these steps, the number of employees that lose their jobs is calculated to be 38. Therefore, the correct answer is not directly listed in the options provided, suggesting there might be additional context needed for precise options. However, the calculation yields 38 employees laid off in this situation.
1. Current Situation:
- The company produces 100 toys each day.
- Workers earn [tex]$15 per hour.
2. Change in Minimum Wage:
- The government sets a new minimum wage at $[/tex]24 per hour.
3. Impact of New Minimum Wage:
- Since the wage per hour increases from [tex]$15 to $[/tex]24, it becomes more expensive for the company to pay the same number of employees.
4. Determine the Effect:
- We assume that the company's total payroll budget remains the same as when they were paying [tex]$15 per hour. To keep the budget constant while wages increase, the company will employ fewer people.
5. Calculating Employee Retention:
- We need to calculate the factor by which the wage has increased. The new wage is $[/tex]24, and the old wage was $15.
- To find out how many workers the company can afford under the new wage structure, we calculate the ratio of the new minimum wage to the old wage:
[tex]\[
\text{Wage Ratio} = \frac{24}{15}
\][/tex]
6. Calculate New Number of Employees:
- Initially, assume there are 100 workers. To maintain the same total wage expense, the company can only keep a fraction of these workers:
[tex]\[
\text{New Number of Employees} = \frac{100}{\text{Wage Ratio}}
\][/tex]
7. Number of Employees Laid Off:
- The difference between the original number of employees and the number of employees they can afford gives the number laid off:
[tex]\[
\text{Employees Laid Off} = 100 - \text{New Number of Employees}
\][/tex]
After performing these steps, the number of employees that lose their jobs is calculated to be 38. Therefore, the correct answer is not directly listed in the options provided, suggesting there might be additional context needed for precise options. However, the calculation yields 38 employees laid off in this situation.
