Consider the following scenario. Dawn works weekends, which include Fridays. Regulations state that she is required
Question:
Consider the following scenario.
• Dawn works weekends, which include Fridays. Regulations state that she is required to take a one hour break after every 4 consecutive hours of work unless she leaves for the day.
• Dawn may not be at work for more than 7 hours total on Friday, for more than 12 hours total on Saturday, and for more than 12 hours total on Sunday. (These attendance limits include any required breaks.)
• Dawn receives no pay for her break hours, i.e. break hours are NOT considered paid hours. She gets paid overtime (extra money) for every hour that she works over 6 paid hours on each particular day. (Only work-hours count toward this sum to earn her overtime, not the break hours.)
• Dawn will work 15 paid hours this weekend. She may spread these weekend hours over a choice of two or all three days and may pick her work schedule freely.
Working 15 paid hours (break hours do not count toward this total) this weekend, find a schedule that maximizes Dawn’s earnings. Explain briefly why this schedule meets the goal of maximized earnings.
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus