Employees at XL Company get paid semi-monthly; at the beginning of the year XL a

Question

Employees at XL Company get paid semi-monthly; at the beginning of the year XL announces that all employees will now be paid monthly.

Which statement is TRUE?

a.XL company will save money by paying all employees less.

b.XL Company will pay employees more each pay period but over the year employees' salaries will remain unchanged.

c.XL Company will pay employees less each pay period but over the year employees' salaries will remain unchanged.

d.Employees will receive a raise because they are getting more per pay check.

Explanation / Answer

initially they were paid semi-monthly

so if we consider this

then we have 12 months and hence they get paid 24 times

now it is changed to monthly

=> they will be paid 12 times a year

which means that now they receive more than they used to receive when it was semi-monthly

but all over

the total earned would be same

hence option is B

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.