Critical Reasoning

Yorco and Zortech are 2 corporations that employ large numbers of full-time workers who are paid by the hour. Publicly available records indicate that Yorco employs roughly the same number of such hourly wage workers as Zortech does but spends a far highter total sum per year on wages for such workers. Therefore, hourly wages must be higher on average at Yorco than at Zortech, since ____.

A. Zortech spends a higher total sum per year than Yorco does to provide its hourly wage workers with benefits other than wages.
B. the work performed by hourly wage workers at Zortech does not require a significantly higher level of skill than the work performed by hourly wage workers at Yorco does.
C. The proportion of all company employees who are hourly wage workers is significantly greater at Yorco than it is at Zortech.
D. Overtime work, which is paid at a substantially higher rate than work done during the regular work week, is rare at both Yorco and Zortech.
E. the highest hourly wages paid at Yorco are higher than the highest hourly wages paid at Zortech.

Please help.

Thanks.

Full-time workers paid hourly. Y + Z have the same # of hourly worked, but Y spends more $$ on wages yearly.

Hourly wages must be higher at Y....

The blank represents a reason the wages at Y are higher. The only way they are higher is if Y does not give its workers wages-money outside the hourly wages (no overtime, bonuses, etc.), or if Y is paying its employees more hourly.

D is the only one that matches either of our predictions, since if there is no overtime, then in order for Yorco to be spending more, they must be paying higher wages at Yorco.

Number of people in Y = n
Number of people in Z = m

given n ~= m

Sum of wages = n x number of hours x rate per hour

Sum(Y) > Sum(Z) ? Why : either number of hours or rate per hour is more

D: says extra hours is rare and not allowed
E: rate per hour is more.... I got E

Vivian when you say D.. Did you ment E (in your explanation's last line)

VivianKerr wrote:Full-time workers paid hourly. Y + Z have the same # of hourly worked, but Y spends more $$ on wages yearly.

Hourly wages must be higher at Y....

The blank represents a reason the wages at Y are higher. The only way they are higher is if Y does not give its workers wages-money outside the hourly wages (no overtime, bonuses, etc.), or if Y is paying its employees more hourly.

D is the only one that matches either of our predictions, since if there is no overtime, then in order for Yorco to be spending more, they must be paying higher wages at Yorco.

Very tough question. your explanation make me clear. Thanks a lot.