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Two Part-Time Jobs: Net Pay Comparison

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Two Part-Time Jobs: Net Pay Comparison

A staff sergeant is choosing between two part-time jobs while drilling with her reserve unit. Job A pays $14.25 per hour for a fixed 20 hours a week, four days on site. The round trip to Job A is 40 miles, and she costs her driving at $0.55 per mile; parking there runs $9 per day on each of the four days she works. Job B pays $13.40 per hour for 24 hours a week, three days on site. The round trip to Job B is 12 miles at the same $0.55 per mile, and parking is free. She has no other transportation costs. She wants to compare what each job actually leaves in her pocket each week, and she also wants to know how much Job A would have to pay per hour to be worth the extra driving.

1. Compute the weekly net pay for each job and state which one leaves more money, and by how much.

Read the worked answer

Job A

  • Gross: 20 h × $14.25 = $285.00
  • Driving: 40 mi × $0.55 = $22.00/day × 4 days = $88.00
  • Parking: $9 × 4 days = $36.00
  • Net: 285.00 − 88.00 − 36.00 = $161.00

Job B

  • Gross: 24 h × $13.40 = $321.60
  • Driving: 12 mi × $0.55 = $6.60/day × 3 days = $19.80
  • Net: 321.60 − 19.80 = $301.80

Difference: 301.80 − 161.00 = $140.80 per week in favor of Job B.

The higher nominal wage at Job A is misleading; the commute and parking eat 43% of its gross pay.

2. Compute net pay per scheduled work hour for each job and explain what the comparison shows.

Read the worked answer
  • Job A: $161.00 ÷ 20 h = $8.05 per hour
  • Job B: $301.80 ÷ 24 h = $12.58 per hour

Job B nets about $4.53 more for every hour actually worked, roughly 56% more. Normalizing to the hour is the fair test because the two jobs have different hour counts; a straight gross-wage comparison ($14.25 vs. $13.40) points the wrong way.

3. Keeping the same 20 hours, commute, and parking costs, what hourly wage would Job A need to match Job B's weekly net?

Read the worked answer

Set up the equation where Job A's net equals $301.80:

20w − 124 = 301.80

  • 20w = 425.80
  • w = $21.29 per hour

Check: 20 × 21.29 = 425.80; 425.80 − 124 = 301.80. ✓

Judgment: Job A would need to pay about $21.29/hr - more than 50% above its posted rate - before the extra driving and parking became worthwhile. Unless Job A offers something not priced here (benefits, schedule fit, career value), Job B is the better money decision.