To find the constant of proportionality (the rate at which Sarah earns per hour), we can use the formula for direct variation:
\[ \text{Earnings} = \text{Rate} \times \text{Hours Worked} \]
We know that Sarah earns $320 for working 40 hours. We can rearrange the formula to find the rate:
\[ \text{Rate} = \frac{\text{Earnings}}{\text{Hours Worked}} = \frac{320}{40} = 8 \]
Thus, the constant of proportionality is:
\[ 8.00 \text{ dollars per hour} \]
So, the answer is:
$8.00 per hour