CA Inter P4 · Chapter 3 · Question 3 of 11
Earnings of a worker under the Halsey (50%) plan and the Rowan plan will be the same when the time taken is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Exactly 50% of the standard time
Explanation
Halsey bonus = 0.5 x (S - T) x R and Rowan bonus = ((S - T)/S) x T x R. Equating them gives 0.5 = T/S, so T = 50% of S. When time taken is more than half the standard time, Rowan pays more; when it is less than half, Halsey pays more.
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