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Should they accept the offer

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Question - FSSL initial year of operation that started February 2021, is very successful. Therefore, the state wants to add its enrollment to 2 youths per term starting January 2022. To, FSSL will need to hire 1 additional employee for $15 per hour for 40 hours each week. The cost of state and federal taxes and workers' compensation insurance per employee is 1% of the gross earnings paid by the employer. Employee taxes will be ignored in this problem. Should they accept the offer? Which costs are sunk in this decision? Which costs are still relevant in this decision? Show your detailed calculations.

Reference no: EM132994062

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