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"cost of working"?

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If someone asked you how much you earned per hour at your job, how would you determine the answer? Would you take your weekly salary and divide by 40 to calculate an hourly rate? What about the time you spend commuting to and from your workplace? If it's an hour each way, five days a week, maybe you should divide by 50 instead. The point is very few people actually calculate their "cost of
working". If you make $1,000 per week is that $25.00 per hour?
To see the whole picture you need to consider two
broad areas: Consider the situation of Joe Accountant, a cubicle dwelling office worker not unlike Dilbert of cartoon fame.
What we thought was 40 hours is actually 55 hours per week. Now let's look at the salary side of the equation. Joe earns a salary of $1,000 per week or $52,000 per year. What's he left with after a few expenses?
Let's do some arithmetic. Joe works 55 hours per week for 48 weeks per year (He gets 2 weeks vacation and 10 paid holidays, that's why its 48 weeks rather than 52.) 55 times 48 equals 2,640 hours per year. How much is that per hour? $24,100 divided by 2,640 hours equals $9.13 per hour. That's a big drop from the $25.00 per hour Joe thought he was making. Chapter 2, Page 67 of the book
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