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Wages, Salaries, and Commissions

34 questions

All types34Multiple choice17Numeric6Fill in the blank11
Question 1Question →

A medical equipment technician is compensated with both an hourly wage and a tiered commission. The technician earns a base rate of 24.00perhourforastandard40−hourworkweek,andtime−and−a−halfforanyhoursworkedbeyond40.Additionally,thetechnicianearnsa624.00 per hour for a standard 40-hour workweek, and time-and-a-half for any hours worked beyond 40. Additionally, the technician earns a 6% commission on all service contracts sold up to 5,000 in a week, and an 8% commission on the portion of sales exceeding 5,000.Ifthetechnicianworked46hoursandsold5,000. If the technician worked 46 hours and sold 8,500 in service contracts last week, what were the technician's total gross earnings?

Show answer & explanation

Answer: $1,756.00

Answer

The technician's total gross earnings for the week were $1,756.00.
The correct answer is found by calculating each component of the compensation structure and summing them. Regular pay is 40 hours at 24.00/hour(24.00/hour ( 960.00). Overtime pay is 6 hours at the time-and-a-half rate of 36.00/hour(36.00/hour ( 216.00). The tiered commission is calculated as 6% of the first 5,000(5,000 ( 300.00) plus 8% of the remaining 3,500insales(3,500 in sales ( 280.00). Adding these components together (960.00+960.00 + 216.00 + 300.00+300.00 + 280.00) results in total gross earnings of $1,756.00.

Step-by-Step Solution

1
Calculate the regular base pay.
40 hours \times 24.00/hour=24.00/hour = 960.00
The technician is paid the base rate for the first 40 hours worked.
2
Calculate the overtime pay.
6 hours \times (24.00×1.5)=6×24.00 \times 1.5) = 6 \times 36.00 = $216.00
The 6 hours worked beyond the standard 40 hours are paid at time-and-a-half.
3
Calculate the first tier of commission.
5,000×0.06=5,000 \times 0.06 = 300.00
The technician earns a 6% commission on the first $5,000 of service contracts sold.
4
Calculate the second tier of commission.
(8,500−8,500 - 5,000) \times 0.08 = 3,500×0.08=3,500 \times 0.08 = 280.00
The technician earns an 8% commission on any sales amount exceeding the initial $5,000.
5
Calculate total gross earnings.
960.00+960.00 + 216.00 + 300.00+300.00 + 280.00 = $1,756.00
Total gross earnings are the sum of regular pay, overtime pay, and all commission tiers.

Key Concept

Calculating gross earnings involving overtime premiums and multi-tiered commission structures.
Question 2Question →

A specialized equipment technician earns a base wage of 28.00perhourforastandard40−hourworkweek,withanyadditionalhourspaidattime−and−a−half.Thetechnicianalsoearnsatieredcommissiononequipmentsold:428.00 per hour for a standard 40-hour workweek, with any additional hours paid at time-and-a-half. The technician also earns a tiered commission on equipment sold: 4% on the first 10,000 of sales, and a higher commission rate on all sales beyond $10,000.

Last week, the technician worked 48 hours, sold 30,000worthofequipment,andhadtotalgrossearningsof30,000 worth of equipment, and had total gross earnings of 3,056.

Calculate the commission rate for the sales exceeding $10,000.

Fill in the blanks below

The commission rate on sales exceeding $10,000 is %.
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Answer

The commission rate on sales exceeding $10,000 is 6%.
The correct answer is found by first isolating the total commission earned (3,056gross−3,056 gross - 1,456 wages = 1,600commission).Then,subtractthe1,600 commission). Then, subtract the 400 earned from the first 10,000tier.Thisleaves10,000 tier. This leaves 1,200 in commission earned on the remaining 20,000insales.Dividing20,000 in sales. Dividing 1,200 by $20,000 yields a 0.06 or 6% commission rate.

Step-by-Step Solution

1
Calculate the base pay for standard hours.
$1,120
The first 40 hours are paid at the standard rate: 40 hours × $28.00/hour.
2
Calculate the overtime pay.
$336
The overtime rate is 28.00×1.5=28.00 × 1.5 = 42.00/hour. The technician worked 8 overtime hours (48 - 40). 42.00×8=42.00 × 8 = 336.
3
Calculate the total hourly wages.
$1,456
Add the base pay and overtime pay: 1,120+1,120 + 336 = $1,456.
4
Calculate the total commission earned.
$1,600
Subtract the total hourly wages from the total gross earnings: 3,056−3,056 - 1,456 = $1,600.
5
Calculate the tier 1 commission amount.
$400
The commission is 4% on the first 10,000ofsales:10,000 of sales: 10,000 × 0.04 = $400.
6
Calculate the tier 2 commission amount and tier 2 sales volume.
Tier 2 Commission: 1,200.Tier2Sales:1,200. Tier 2 Sales: 20,000.
Subtract tier 1 commission from total commission (1,600−1,600 - 400 = 1,200).Subtracttier1salesfromtotalsales(1,200). Subtract tier 1 sales from total sales ( 30,000 - 10,000=10,000 = 20,000).
7
Determine the tier 2 commission rate.
6%
Divide the tier 2 commission by the tier 2 sales volume: 1,200÷1,200 ÷ 20,000 = 0.06, which is 6%.

Key Concept

Reverse engineering multi-tier compensation structures involving overtime wages and graduated commission rates.
Question 3Question →

A sales representative earns a base monthly salary of 2,400.Theyalsoearnacommissionbasedontheirtotalmonthlysalesvolume.Thecommissionstructureisasfollows:−2,400. They also earn a commission based on their total monthly sales volume. The commission structure is as follows: - 4\%onthefirst on the first 15,000 of sales
- 6%6\% on the next 25,000ofsales−25,000 of sales - 8.5\%onanysalesexceeding on any sales exceeding 40,000

In addition, if their total monthly sales exceed 50,000,theyreceiveaone−timeperformancebonusof50,000, they receive a one-time performance bonus of 750. Last month, the representative had a total sales volume of $54,200. What was the representative's total gross income for the month?

Show answer & explanation

Answer: 6457

Answer

6457
The correct gross income is found by calculating the commission for each tier separately (600forthefirsttier,600 for the first tier, 1,500 for the second tier, and 1,207forthethirdtier),summingthemtogetatotalcommissionof1,207 for the third tier), summing them to get a total commission of 3,307, and then adding the base salary of 2,400andthe2,400 and the 750 performance bonus (awarded since sales exceeded 50,000)forafinaltotalof50,000) for a final total of 6,457.

Step-by-Step Solution

1
Calculate the commission for the first tier (0to0 to 15,000).
15,000×0.04=15,000 \times 0.04 = 600
The representative earns a 4% commission on the first $15,000 of sales.
2
Calculate the commission for the second tier (the next $25,000).
25,000×0.06=25,000 \times 0.06 = 1,500
The 6% rate applies to the next 25,000ofsales(coveringsalesfrom25,000 of sales (covering sales from 15,000 to $40,000).
3
Calculate the commission for the third tier (sales exceeding $40,000).
54,200−54,200 - 40,000 = 14,200.14,200. 14,200 \times 0.085 = $1,207
The 8.5% rate applies to any sales exceeding the $40,000 threshold.
4
Sum the total commission.
600+600 + 1,500 + 1,207=1,207 = 3,307
Adding the amounts from all three tiers gives the total commission earned.
5
Calculate the total gross income by adding the base salary, total commission, and the performance bonus.
2,400+2,400 + 3,307 + 750=750 = 6,457
Total sales (54,200)exceededthe54,200) exceeded the 50,000 threshold, so the $750 bonus is awarded. Gross income includes base pay, total commission, and the bonus.

Key Concept

Calculating tiered commissions, applying percentages to multiple thresholds, and combining various income streams.
Question 4Question →

Read the compensation scenario below and fill in the blanks with the correct numerical values.

Fill in the blanks below

A salon stylist earns a weekly base salary of 450.Shealsoreceivesa20450. She also receives a 20% commission on all chemical treatments and a 10% commission on retail product sales. In a single week, she bills 850 for chemical treatments and sells 240inretailproducts.Forthisweek,thestylistearnedatotalof240 in retail products. For this week, the stylist earned a total of in commissions, which brings her total gross pay to $.
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Answer

The stylist earned 194intotalcommissions,makinghertotalgrosspay194 in total commissions, making her total gross pay 644.
The correct commission is found by multiplying each sales category by its respective percentage (850×0.20=170850 \times 0.20 = 170 and 240×0.10=24240 \times 0.10 = 24), summing them (170+24=194170 + 24 = 194), and adding the result to the 450basesalaryforatotalof450 base salary for a total of 644.

Step-by-Step Solution

1
Calculate the commission earned from chemical treatments.
850×0.20=170850 \times 0.20 = 170
The stylist earns 20% commission on the $850 billed for these specific services.
2
Calculate the commission earned from retail product sales.
240×0.10=24240 \times 0.10 = 24
The stylist earns 10% commission on the $240 worth of retail sales.
3
Determine the total commission earned for the week.
170+24=194170 + 24 = 194
Total commission is the sum of the commissions from both categories.
4
Calculate the total gross pay.
450+194=644450 + 194 = 644
Total gross pay is the base salary plus the total commission earned.

Key Concept

Calculating varied commission rates on different sales categories and combining them with a base salary to find gross earnings.
Estimated Time:1m 30s
Question 5Question →

Determine the total gross earnings for the month based on the given compensation structure.

Fill in the blanks below

During the month of October, a medical equipment consultant recorded total sales of $45,000\$45,000. His compensation package includes a guaranteed monthly base salary of $1,200\$1,200. On top of this base, he earns a 5%5\% commission on the first $20,000\$20,000 of his sales, and an 8%8\% commission on all sales volume beyond that initial $20,000\$20,000. Based on these figures, the consultant's total gross pay for October is $\$$.
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Answer

The consultant's total gross pay is $4,200.
The total gross pay is found by isolating the sales into two tiers: the first 20,000earnsa520,000 earns a 5% commission ( 1,000) and the remaining 25,000earnsan825,000 earns an 8% commission ( 2,000). Adding these two commissions to the 1,200basesalaryyieldsatotalgrosspayof1,200 base salary yields a total gross pay of 4,200.

Step-by-Step Solution

1
Calculate the commission earned on the first tier of sales.
$20,000×0.05=$1,000\$20,000 \times 0.05 = \$1,000
The consultant earns a 5% commission on the initial $20,000 of sales.
2
Determine the amount of sales that qualify for the second commission tier.
$45,000−$20,000=$25,000\$45,000 - \$20,000 = \$25,000
The higher commission rate only applies to the sales volume exceeding the first $20,000.
3
Calculate the commission earned on the second tier of sales.
$25,000×0.08=$2,000\$25,000 \times 0.08 = \$2,000
The consultant earns an 8% commission on the remaining $25,000 of sales.
4
Sum the base salary and both commission amounts to find the total gross pay.
$1,200+$1,000+$2,000=$4,200\$1,200 + \$1,000 + \$2,000 = \$4,200
Total earnings are the sum of the guaranteed salary and all commissions earned.

Key Concept

Calculating total earnings involving a base salary and a multi-tiered commission structure.
Question 6Question →

An independent contractor installs smart home systems. He earns a base rate of $18.50\$18.50 per hour for a standard 4040-hour workweek. For any overtime hours worked beyond 4040 hours, he earns time-and-a-half. He also receives a 5%5\% commission on all equipment sales he makes. If he worked 4848 hours this week and sold $3,200\$3,200 worth of equipment, what are his total gross earnings for the week?

Show answer & explanation

Answer: \$1,122.00

Answer

The total gross earnings for the week are $1,122.00\$1,122.00.
The correct answer accurately accounts for all three payment streams. The base pay for 40 hours is 40×$18.50=$740.0040 \times \$18.50 = \$740.00. The overtime pay for the 8 extra hours is calculated at time-and-a-half (18.50×1.5=$27.75/hr18.50 \times 1.5 = \$27.75/hr), which yields 8×$27.75=$222.008 \times \$27.75 = \$222.00. The 5% commission on $3,200\$3,200 in sales is 0.05×3,200=$160.000.05 \times 3,200 = \$160.00. Adding these together ($740+$222+$160\$740 + \$222 + \$160) results in $1,122.00\$1,122.00.

Step-by-Step Solution

1
Calculate the standard base pay for 4040 hours.
40×$18.50=$740.0040 \times \$18.50 = \$740.00
The contractor earns a fixed hourly rate for the first 40 hours worked.
2
Calculate the number of overtime hours and the overtime rate.
Overtime hours: 48−40=848 - 40 = 8. Overtime rate: $18.50×1.5=$27.75\$18.50 \times 1.5 = \$27.75.
Overtime is paid at 'time-and-a-half' for any hours worked beyond the standard 40 hours.
3
Calculate the total overtime pay.
8×$27.75=$222.008 \times \$27.75 = \$222.00
Multiply the overtime hours by the higher overtime pay rate.
4
Calculate the commission earned on equipment sales.
0.05×$3,200=$160.000.05 \times \$3,200 = \$160.00
The commission is 5% (or 0.05) of the total sales volume.
5
Sum all three components to find the total gross earnings.
$740.00+$222.00+$160.00=$1,122.00\$740.00 + \$222.00 + \$160.00 = \$1,122.00
Gross earnings are the sum of base pay, overtime pay, and commission before any deductions.

Key Concept

Calculating Gross Pay with Overtime and Commission
Question 7Question →

An agricultural equipment salesperson earns a fixed monthly salary of $2,400\$2,400. They also earn a 4.5%4.5\% commission on their first $50,000\$50,000 in sales, and a 6%6\% commission on any sales exceeding $50,000\$50,000 for the month. If the salesperson's total sales for this month are $82,000\$82,000, what is their total gross income for the month?

Show answer & explanation

Answer: $6,570\$6,570

Answer

The correct total gross income is $6,570\$6,570.
The correct total gross income is found by adding the base salary ($2,400\$2,400) to the commission from the first tier (4.5%4.5\% of $50,000=$2,250\$50,000 = \$2,250) and the commission from the second tier (6%6\% of the remaining $32,000=$1,920\$32,000 = \$1,920).

Step-by-Step Solution

1
Calculate the commission earned on the first $50,000 of sales.
$50,000×0.045=$2,250\$50,000 \times 0.045 = \$2,250
The salesperson earns a 4.5% commission on sales up to the $50,000 threshold.
2
Determine the amount of sales that exceeded the $50,000 threshold.
$82,000−$50,000=$32,000\$82,000 - \$50,000 = \$32,000
The higher 6% commission rate only applies to the sales amount above the initial threshold.
3
Calculate the commission earned on the exceeding sales.
$32,000×0.06=$1,920\$32,000 \times 0.06 = \$1,920
Apply the 6% commission rate to the excess sales amount.
4
Calculate the total gross income by adding the base salary and both commission amounts.
$2,400+$2,250+$1,920=$6,570\$2,400 + \$2,250 + \$1,920 = \$6,570
Gross income includes the fixed monthly base salary plus all commissions earned.

Key Concept

Calculating tiered commissions and adding them to a base salary to determine total gross income.
Question 8Question →

A retail salesperson earns a weekly base salary of 400plusa5400 plus a 5% commission on their total sales. If the salesperson sells 2,000 worth of merchandise in a given week, what is their total gross pay for that week?

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Answer: $500

Answer

$500
The total gross pay is found by adding the base salary to the commission earned. The commission is 5% of 2,000,whichis2,000, which is 100. Adding this to the base salary of 400givesatotalof400 gives a total of 500.

Step-by-Step Solution

1
Calculate the commission earned on the total sales.
2,000×0.05=2,000 \times 0.05 = 100
The commission is a percentage of the total sales for the week.
2
Add the earned commission to the base salary to find the total gross pay.
400+400 + 100 = $500
Total gross pay equals the guaranteed base salary plus any commission earned.

Key Concept

Calculating total compensation using a base salary plus a percentage commission on sales.
Question 9Question →

Determine the commission earned and fill in the blank.

Fill in the blanks below

A travel agent receives a 4%4\% commission on all vacation packages they book. If the agent books a luxury cruise package priced at $8,500\$8,500, their commission for this booking is $\$ .
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Answer

340
The travel agent's commission is calculated by taking 4%4\% of the total package price of $8,500\$8,500. Converting 4%4\% to 0.040.04 and multiplying by $8,500\$8,500 gives exactly $340\$340.

Step-by-Step Solution

1
Convert the commission percentage to a decimal.
4%=0.044\% = 0.04
Percentages must be converted to decimals before performing multiplication to find a part of a whole.
2
Multiply the total sales price by the decimal commission rate.
$8,500×0.04=$340\$8,500 \times 0.04 = \$340
A commission is calculated as a percentage of the total sales amount.

Key Concept

Calculating commission based on a fixed percentage of a total sale amount.
Question 10Question →

Solve the following problem by entering the correct numerical value in the blank.

Fill in the blanks below

Sarah works as a heavy equipment sales representative. She earns a monthly base salary of $2,400\$2,400. She also earns a 4%4\% commission on her first $40,000\$40,000 in monthly sales, and a 7.5%7.5\% commission on all sales exceeding $40,000\$40,000. In March, Sarah's total gross pay was $6,100\$6,100.

The total value of her sales in March was $\$$.
Show answer & explanation

Answer

68,000
Subtracting the base salary ($2,400\$2,400) and the maximum first tier commission ($1,600\$1,600) from the total gross pay ($6,100\$6,100) leaves $2,100\$2,100. This remaining amount is the commission earned at the 7.5%7.5\% rate. Dividing $2,100\$2,100 by 0.0750.075 yields $28,000\$28,000, which is the sales amount over the $40,000\$40,000 threshold. Adding this to the initial $40,000\$40,000 threshold gives the total monthly sales of $68,000\$68,000.

Step-by-Step Solution

1
Calculate the commission earned from the first tier of sales.
$40,000×0.04=$1,600\$40,000 \times 0.04 = \$1,600
To determine the maximum commission Sarah can earn at the 4%4\% base rate.
2
Subtract the base salary and first tier commission from the total gross pay to find the remaining commission.
$6,100−$2,400−$1,600=$2,100\$6,100 - \$2,400 - \$1,600 = \$2,100
To isolate the portion of her earnings that came exclusively from the 7.5%7.5\% commission tier.
3
Calculate the sales volume required to generate the remaining tier 2 commission.
$2,100÷0.075=$28,000\$2,100 \div 0.075 = \$28,000
To find out how much she sold above the $40,000\$40,000 threshold.
4
Add the tier 2 sales to the tier 1 threshold to find the total sales.
$40,000+$28,000=$68,000\$40,000 + \$28,000 = \$68,000
To find the complete total value of her sales in March.

Key Concept

Solving for required total sales given a base salary and a tiered commission structure
Question 11Question →

A medical equipment representative earns a base salary of $800 per week plus a tiered commission on weekly sales. The commission structure is as follows:

- 3% on the first 10,000ofsales−510,000 of sales - 5% on the next 15,000 of sales
- 7.5% on any sales exceeding $25,000

During a specific week, the representative's total sales are 32,000.Additionally,therepresentativereceivesa32,000. Additionally, the representative receives a 150 bonus for exceeding 30,000insales,butmustpay30,000 in sales, but must pay 275 out-of-pocket for weekly travel expenses which are deducted from their gross earnings. What are the representative's net earnings for the week?

Show answer & explanation

Answer: $2,250

Answer

$2,250
The net earnings are correctly found by evaluating the sales across three tiers: 3% on the first 10,000(10,000 ( 300), 5% on the next 15,000(15,000 ( 750), and 7.5% on the remaining 7,000(7,000 ( 525). Adding this 1,575commissiontothe1,575 commission to the 800 base salary and 150bonusyieldsgrossearningsof150 bonus yields gross earnings of 2,525. Subtracting the 275inexpensesresultsinafinalnetpayof275 in expenses results in a final net pay of 2,250.

Step-by-Step Solution

1
Calculate the commission on the first tier (0to0 to 10,000).
10,000×0.03=10,000 \times 0.03 = 300
The first $10,000 of sales earns a 3% commission.
2
Calculate the commission on the second tier (10,000to10,000 to 25,000).
15,000×0.05=15,000 \times 0.05 = 750
The next $15,000 of sales earns a 5% commission.
3
Calculate the commission on the third tier (sales exceeding $25,000).
Total sales (32,000)−32,000) - 25,000 = 7,000.7,000. 7,000 \times 0.075 = $525
The remaining sales amount above $25,000 earns a 7.5% commission.
4
Determine total commission.
300+300 + 750 + 525=525 = 1,575
Total commission is the sum of earnings from all three tiers.
5
Calculate net earnings.
800(base)+800 (base) + 1,575 (commission) + 150(bonus)−150 (bonus) - 275 (expenses) = $2,250
Net earnings equal base salary plus total commission plus bonuses minus deductions.

Key Concept

Calculating tiered commissions, bonuses, and deductions to determine net earnings.
Question 12Question →

A car rental agent earns a base weekly salary of 500.Inaddition,theyearna5500. In addition, they earn a 5% commission on any rental upgrades they sell. If the agent sells 800 worth of upgrades in one week, what is their total weekly pay?

Show answer & explanation

Answer: $540

Answer

$540
The total weekly pay is found by adding the base salary and the commission. The commission is 5% of the 800inupgradesales,whichequals800 in upgrade sales, which equals 40. Adding the 40commissiontothe40 commission to the 500 base salary results in a total of $540.

Step-by-Step Solution

1
Calculate the commission earned from the upgrade sales.
$800×0.05=$40\$800 \times 0.05 = \$40
The agent earns 5% on all rental upgrades sold.
2
Add the commission to the base salary to find the total weekly pay.
$500+$40=$540\$500 + \$40 = \$540
Total pay is the sum of the guaranteed base salary and the variable commission.

Key Concept

Calculating total earnings by adding a percentage-based commission to a fixed base salary.
Question 13Question →

A delivery driver earns a base pay of 80.00perdayplus80.00 per day plus 3.50 for each package delivered. If the driver delivers 40 packages in one day, what is the driver's total gross pay for that day, in dollars?

Show answer & explanation

Answer: 220

Answer

220
The total gross pay is the sum of the fixed base pay (80.00)andthevariabledeliveryearnings(40packages×80.00) and the variable delivery earnings (40 packages × 3.50 per package = 140.00),whichyieldsatotalof140.00), which yields a total of 220.00.

Step-by-Step Solution

1
Calculate earnings from package deliveries
$140.00
The driver earns $3.50 for each of the 40 packages delivered (40 × 3.50).
2
Calculate total gross pay
$220.00
Add the base daily pay (80.00)tothedeliveryearnings(80.00) to the delivery earnings ( 140.00) to find the total amount earned for the day.

Key Concept

Calculating total gross pay using a combination of base pay and piece-rate pay
Estimated Time:45s
Question 14Question →

Determine the total gross earnings based on the provided compensation structure.

Fill in the blanks below

A regional manager for a logistics company earns a base monthly salary of $3,200\$3,200. She receives a 5%5\% commission on her first $40,000\$40,000 in logistics contracts, and an 8%8\% commission on any contract sales exceeding $40,000\$40,000 within the month. If she secures $65,000\$65,000 in contract sales this month, her total gross earnings will be $\$$.
Show answer & explanation

Answer

7200
The correct total is found by breaking the earnings into three parts: the 3,200basesalary,the53,200 base salary, the 5% commission on the first 40,000 (2,000),andthe82,000), and the 8% commission on the remaining 25,000 (2,000).Addingthesetogetheryields2,000). Adding these together yields 7,200.

Step-by-Step Solution

1
Calculate the commission earned on the first tier of sales.
0.05×40,000=$2,0000.05 \times 40,000 = \$2,000
The manager earns a 5% commission on the first $40,000 in sales.
2
Determine the amount of sales that fall into the second commission tier.
65,000−40,000=$25,00065,000 - 40,000 = \$25,000
Sales exceeding the $40,000 threshold are subject to a different commission rate.
3
Calculate the commission earned on the second tier of sales.
0.08×25,000=$2,0000.08 \times 25,000 = \$2,000
The manager earns an 8% commission on the $25,000 that exceeded the initial threshold.
4
Sum the base salary and all commissions to find the total gross earnings.
3,200+2,000+2,000=$7,2003,200 + 2,000 + 2,000 = \$7,200
Total earnings equal the base salary plus the sum of all tiered commissions.

Key Concept

Calculating total compensation using a base salary combined with a tiered commission structure.
Question 15Question →

A freelance illustrator earns a fixed weekly retainer of $400\$400 and receives a 10%10\% commission on any artwork sold in galleries. If the illustrator sells $1,500\$1,500 worth of artwork during the week, what is their total gross pay for that week?

Show answer & explanation

Answer: $550\$550

Answer

The total gross pay is $550\$550.
To find the total gross pay, first calculate 10% of the $1,500\$1,500 in sales, which is $150\$150. Then, add this commission amount to the $400\$400 fixed retainer, resulting in a total gross pay of $550\$550.

Step-by-Step Solution

1
Calculate the commission earned from the artwork sales.
$1,500×0.10=$150\$1,500 \times 0.10 = \$150
The illustrator earns a 10% commission on the total value of artwork sold.
2
Add the earned commission to the fixed weekly retainer to find the total gross pay.
$400+$150=$550\$400 + \$150 = \$550
The total gross pay is the sum of the fixed retainer and any additional commission.

Key Concept

Calculating total gross pay by combining a fixed base salary with a percentage-based commission.
Question 16Question →

A manufacturing employee earns a base wage of $15.00\$15.00 per hour for a standard 40-hour workweek, with time-and-a-half pay for any additional hours worked. In addition to hourly wages, the employee earns a piece-rate bonus for every unit produced that exceeds a weekly quota of 100 units. Last week, the employee worked 48 hours, produced 180 units, and earned a total gross pay of $1,060.00\$1,060.00. What is the piece-rate bonus paid for each unit produced over the quota?

Show answer & explanation

Answer: $3.50\$3.50

Answer

The piece-rate bonus is $3.50\$3.50 per unit.
The correct piece-rate is found by first isolating the hourly wages. The employee earned $600.00\$600.00 for 40 regular hours and $180.00\$180.00 for 8 overtime hours (at $22.50\$22.50/hr), totaling $780.00\$780.00. Subtracting this from the $1,060.00\$1,060.00 gross pay leaves a $280.00\$280.00 bonus pool. Since the employee produced 80 units above the 100-unit quota, the rate per excess unit is $280.00÷80=$3.50\$280.00 \div 80 = \$3.50.

Step-by-Step Solution

1
Calculate the total hourly pay, including standard and overtime hours.
Regular pay: 40×$15.00=$600.0040 \times \$15.00 = \$600.00. Overtime pay: 8×($15.00×1.5)=8×$22.50=$180.008 \times (\$15.00 \times 1.5) = 8 \times \$22.50 = \$180.00. Total hourly pay = $780.00\$780.00.
You must isolate the hourly earnings from the total gross pay to determine how much money came from the piece-rate bonus.
2
Determine the total amount of the piece-rate bonus pool.
$1,060.00−$780.00=$280.00\$1,060.00 - \$780.00 = \$280.00
Subtracting the total hourly earnings from the total gross pay gives the exact amount earned purely from assembling extra units.
3
Determine the number of units eligible for the piece-rate bonus.
180−100=80180 - 100 = 80 units
The bonus is only paid for units produced that exceed the weekly quota of 100.
4
Calculate the bonus amount per excess unit.
$280.00÷80=$3.50\$280.00 \div 80 = \$3.50
Dividing the total bonus pool by the number of eligible units yields the individual piece-rate.

Key Concept

Calculating multi-component compensation by isolating variables (base pay, overtime, and piece-rate quotas).
Question 17Question →

A call center representative earns a base salary of $400\$400 per week, plus a $5\$5 bonus for every new customer account they open. If the representative opens 1515 new accounts in one week, what is their total gross pay for that week?

Fill in the blanks below

Total gross pay: $\$
Show answer & explanation

Answer

475
To find the total gross pay, you must first calculate the total bonus earned by multiplying the number of new accounts (1515) by the bonus per account ($5\$5). This gives a total bonus of $75\$75. You then add this bonus to the base weekly salary of $400\$400, which results in a total gross pay of $475\$475.

Step-by-Step Solution

1
Calculate the total bonus earned from opening new accounts.
$5×15=$75\$5 \times 15 = \$75
The representative earns a fixed bonus of $5\$5 for each of the 1515 accounts opened.
2
Add the total bonus to the weekly base salary to find the total gross pay.
$400+$75=$475\$400 + \$75 = \$475
Total gross pay is the sum of the guaranteed base salary and any additional bonuses earned during the week.

Key Concept

Calculating total gross pay by combining a fixed base salary with piecework or bonus earnings.
Question 18Question →

A commercial diver earns a base rate of $45.00\$45.00 per hour for the first 4040 hours worked in a week, time-and-a-half for the next 1010 hours (hours 4141 through 5050), and double time for any hours worked beyond 5050 hours. Additionally, the diver receives a $125\$125 hazard bonus for each dive exceeding a depth of 100100 feet. Last week, the diver logged a total of 5454 hours of work and completed 33 dives that exceeded 100100 feet in depth. Based on this information, calculate the diver's total gross pay for the week.

Fill in the blanks below

The diver's total gross pay for the week is $\$ .
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Answer

The total gross pay is $3,210\$3,210.
The correct answer accurately divides the 54 total hours into three distinct pay tiers: 40 hours at the base rate ($1,800\$1,800), 10 hours at 1.5x ($675\$675), and 4 hours at 2x ($360\$360). It then correctly adds the flat hazard bonus of $375\$375 (3×$1253 \times \$125) to reach the final gross pay of $3,210\$3,210.

Step-by-Step Solution

1
Calculate the standard pay for the first 40 hours.
$1,800\$1,800
$45.00×40=$1,800\$45.00 \times 40 = \$1,800
2
Calculate the time-and-a-half pay for the next 10 hours.
$675\$675
The time-and-a-half rate is $45.00×1.5=$67.50\$45.00 \times 1.5 = \$67.50. For 10 hours, this is $67.50×10=$675\$67.50 \times 10 = \$675.
3
Calculate the double time pay for the remaining hours over 50.
$360\$360
The diver worked 54 total hours, so 4 hours are paid at double time. The rate is $45.00×2=$90.00\$45.00 \times 2 = \$90.00. For 4 hours, this is $90.00×4=$360\$90.00 \times 4 = \$360.
4
Calculate the total hazard bonuses earned.
$375\$375
The diver completed 3 deep dives at $125\$125 each. 3×$125=$3753 \times \$125 = \$375.
5
Sum all compensation components to find the total gross pay.
$3,210\$3,210
$1,800+$675+$360+$375=$3,210\$1,800 + \$675 + \$360 + \$375 = \$3,210

Key Concept

Calculating multi-tiered compensation involving standard wages, multiple overtime multipliers, and piecework bonuses.
Estimated Time:2m 0s
Question 19Question →

A furniture store salesperson earns a weekly base salary of $500\$500, plus a 4%4\% commission on all sales. If the salesperson sells $3,000\$3,000 worth of furniture in a week, what is their total gross pay for that week?

Show answer & explanation

Answer: $620\$620

Answer

$620\$620
To find the total gross pay, you must first determine the commission earned by multiplying the total sales by the commission rate. 4%4\% of $3,000\$3,000 is $120\$120. Next, add this commission to the base salary. $500+$120=$620\$500 + \$120 = \$620. Therefore, the salesperson's total gross pay is $620\$620.

Step-by-Step Solution

1
Calculate the commission earned from the sales.
$3,000×0.04=$120\$3,000 \times 0.04 = \$120
The salesperson earns a 4% commission on their total sales volume.
2
Add the commission to the base salary to find the total gross pay.
$500+$120=$620\$500 + \$120 = \$620
Total gross pay is the sum of the fixed base salary and the variable commission.

Key Concept

Calculating total earnings by combining a fixed base salary with a percentage-based commission on sales.
Question 20Question →

A marketing consultant earns a weekly base salary of $850\$850. She also earns a 4%4\% commission on any client contracts she secures beyond a weekly quota of $5,000\$5,000. If she secures $18,500\$18,500 in contracts this week, what are her total gross earnings?

Show answer & explanation

Answer: \$1,390

Answer

\$1,390
The correct answer is found by subtracting the $5,000\$5,000 quota from the total $18,500\$18,500 in contracts to find the commissionable amount ($13,500\$13,500). Then, calculating 4%4\% of that amount yields $540\$540 in commission. Finally, adding the $540\$540 commission to the $850\$850 base salary results in total gross earnings of $1,390\$1,390.

Step-by-Step Solution

1
Determine the amount of sales eligible for commission.
$18,500−$5,000=$13,500\$18,500 - \$5,000 = \$13,500
The consultant only earns commission on contracts beyond the $5,000\$5,000 quota.
2
Calculate the commission earned on the eligible sales.
0.04×$13,500=$5400.04 \times \$13,500 = \$540
The commission rate is 4%4\%, which is 0.040.04 as a decimal.
3
Add the commission to the base salary to find total gross earnings.
$850+$540=$1,390\$850 + \$540 = \$1,390
Total earnings are the sum of the fixed base salary and the variable commission.

Key Concept

Calculating gross pay involving a base salary and a tiered commission structure.
Estimated Time:1m 15s
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Wages, Salaries, and Commissions Practice Questions — Armed Services Vocational Aptitude Battery (ASVAB) | Examkin