Calculate the immediate financial impact in 2021 of the increase (change) in hourly wages. This increase will immediately affect the profitability of the company due to the impending increase in the minimum wage. Ignore tax issues such as employment tax in your calculation. Job CategoryWage/ SalaryNumber of EmployeesHours per yearTotalI$862,000$96,000 II$1362,000$156,000 III$1832,000$108,000 IV$2222,000$88,000 Manager$50,000 per year2Salaried$100,000 Total Labor 19 $548,000

The financial impact refers to the positive or negative impact of an event on the financial figures.…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Calculate the immediate financial impact in 2021 of the increase (change) in hourly wages. This increase will immediately affect the profitability of the company due to the impending increase in the minimum wage. Ignore tax issues such as employment tax in your calculation.

Job Category	Wage/ Salary	Number of Employees	Hours per year	Total
I	$8	6	2,000	$96,000
II	$13	6	2,000	$156,000
III	$18	3	2,000	$108,000
IV	$22	2	2,000	$88,000
Manager	$50,000 per year	2	Salaried	$100,000
	Total Labor	19		$548,000

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