Cycling through Pittsburgh, Pennsylvania, to look at its industrial heritage is

Question

Cycling through Pittsburgh, Pennsylvania, to look at its industrial heritage is an event open to the public. This intriguing ride is laced with the economic challenges that steel mills in Pittsburgh and other areas in the United States have faced resulting in company reductions and shutdowns. Situations similar to the following example are not uncommon. Full-time employees (40 hours per week) at the local steel mill were used to earning up to 10 hours of overtime in a two-week time period. They would typically work five overtime hours Monday through Friday and five overtime hours on the weekend. Many got used to the extra pay and began living beyond the means of their regular pay. Then overtime was cut. The average laborer

Cycling through Pittsburgh, Pennsylvania, to look at its industrial heritage is an event open to the public. This intriguing ride is laced with the economic challenges that steel mills in Pittsburgh and other areas in the United States have faced resulting in company reductions and shutdowns. Situations similar to the following example are not uncommon. Full-time employees (40 hours per week) at the local steel mill were used to earning up to 10 hours of overtime in a two-week time period. They would typically work five overtime hours Monday through Friday and five overtime hours on the weekend. Many got used to the extra pay and began living beyond the means of their regular pay. Then overtime was cut. The average laborer

Explanation / Answer

1. Typical pay for 2 week period = regular pay + overtime pay

Regular pay = 40 hours/week * 2 weeks * $25/hour = $2000

Overtime pay = 5 hours * $25/hour * 1.5 + 5 hours * $25/hour * 2 = 437.5

So typical pay = 2000+437.5 = 2437.5

2. When overtime was cut, reduction in pay = 437.5

So % pay cut = 437.5 / 2437.5 = 17.9%

Hope this helped. Let me know in case of any queries.

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