Question

1. Mike can work as many or as few hours as she wants at the college bookstore for $12 per hour. But due to her hectic schedule, she has just 13 hours per week that she can spend working at either the bookstore or at other potential jobs. One potential job, at a café, will pay her $14 per hour for up to 4 hours per week. She has another job offer at a garage that will pay her $13 an hour for up to 6 hours per week. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work. If her goal is to maximize the amount of money she can make each week,

1. how many hours will he work at the bookstore? Show work!!
2. What is the total income at maximization – Show work!!

Answer 1

A. Mike has 13 hours per week to work. To maximize her income, she will have a preference for jobs that pay higher.

Cafe job pays highest but can only be done for upto 4 hours. She will work at the cafe for 4 hours. She will still have 9 hours (13-4) left to work.

Garage job pays the next highest but can be done for only 6 hours. She will work at the garage for 6 hours. She will now have 3 hours (9-6) left to work.

The bookstore job pays more than the day care centre job and she can work there as long as she wants. She will spend the remaing 3 hours working in the bookstore.

Therefore, she will work in the bookstore for 3 hours.

B.

Job	Hours Worked	Wage Rate	Earnings
Bookstore	3	$12/hr	3*12= $36
Cafe	4	$14/hr	4*14= $56
Garage	6	$13/hr	6*13= $78
Daycare Centre	0	$11.5/hr	$0
Total	13		$170

Total Income at maximization is $170 (36+56+78).