your reward for hard work your paycheck should reflect your gross income. why is it important to...

Your Reward for Hard Work

Your paycheck should reflect your gross income.

Why is it important to know how to calculate your gross income?

Lesson Objective

Calculate straight-time pay.

Content Vocabulary

hourly rate

straight-time pay

gross income

hourly rate

A fixed amount of money for each hour you work.

hourly rate

A fixed amount of money for each hour you work.

straight-time pay

The total amount of money you earn for a pay period at the regular hourly rate.

straight-time pay

The total amount of money you earn for a pay period at the regular hourly rate.

gross income

The total amount you are paid during a pay period.

gross income

The total amount you are paid during a pay period.

Shawna Jackson is a mail clerk. She earns $8.40 per hour. Last week she worked 40 hours, and this week she worked 39½ hours.

What is her straight-time pay for each week?

Example 1Example 1

Step: Find the straight-time pay.

Last week: $8.40 × 40 = $336.00

This week: $8.40 × 39½ = $331.80

Example 1 AnswerExample 1 Answer

Izumi is a musician. She earns $35.00 per hour. She works 32½ hours.

What is her straight-time pay?

Practice 1Practice 1

$1,137.50

Practice 1 AnswerPractice 1 Answer

Steve is a plumber. He earns $28.75 per hour. He works 39¾ hours.

What is his straight-time pay?


$1,142.81


Lesson Objective

Calculate straight-time, overtime, and total pay.

Content Vocabulary

overtime pay

time and a half

double time

overtime pay

Extra pay for hours worked beyond the regular number of hours.

overtime pay

Extra pay for hours worked beyond the regular number of hours.

time and a half

An overtime pay rate of 1½ times the regular hourly rate.

time and a half

An overtime pay rate of 1½ times the regular hourly rate.

double time

An overtime pay rate of twice the regular hourly rate.

double time

An overtime pay rate of twice the regular hourly rate.

Alonso Perez is paid $8.20 an hour for a regular 40-hour week. His overtime rate is 1½ times his regular hourly rate. This week Perez worked his regular 40 hours plus 10 hours of overtime.

What is his total pay?

Example 1Example 1

Find the straight-time pay.

Hourly Rate × Regular Hours Worked

$8.20 × 40 = $328.00

Example 1 Answer: Example 1 Answer: Step 1Step 1

Find the overtime pay.

Overtime Rate × Overtime Hours Worked

(1.5 × $8.20) × 10 = $123.00


Find the total pay.

Straight-Time Pay + Overtime Pay

$328.00 + $123.00 = $451.00

Example 1 Answer:Example 1 Answer: Step 3Step 3

Jiwon Chang earns $11.70 per hour plus time and a half for overtime. Last week he worked his regular 40 hours plus six hours on the weekend.

What is his total pay for the week?

Practice 1 Practice 1

$573.30


Nadia Campana earns a regular hourly rate of $23.60. She earns double time for work on Sundays. Last week she worked her regular 36-hour week plus 7½ hours on Sunday.

What is her total pay for the week?


$1,203.60


Lesson Objective

Calculate the total hours on a weekly time card.

Content Vocabulary

weekly time cardweekly time card

A daily record of the time you report to work and the time you depart.

weekly time card

A daily record of the time you report to work and the time you depart.

Gail Stough is required to keep a weekly time card.

What are her daily hours for September 18?

What are her total hours for the week?

Example 1Example 1

Figure 1.1Figure 1.1

Find the total hours for the week.

Sum of daily hours

8 + 8¼ + 7½ + 8¼ + 8

8 + 8¼ + 7½ + 8¼ + 8 = 39 + 4/4 = 40 total hours

Example 1 Answer:Example 1 Answer: Step 2Step 2

Jamal Parker works at a company that uses military time. Thus, 1:00 P.M. is shown as 13:00, 2:00 P.M. as 14:00, etc. On Monday, October 1, Jamal worked from 8:02 to 11:47 and from 13:08 to 17:06.

How many hours did he work on Monday?

How many hours did he work rounded to the nearest quarter hour?

Practice 1 Practice 1

Lesson Objective

Compute total pay on a piecework basis.

Content Vocabulary

pieceworkpiecework

A worker receives a specified amount of money for each item of work completed.

piecework

A worker receives a specified amount of money for each item of work completed.

Ramon Hernandez works for National Cabinet Company. He is paid $8.00 for each cabinet he assembles. Last week he assembled 45 cabinets. This week he assembled 42.

What is his pay for each week?

Example 1Example 1

Step: Find the total pay.

Last week: $8.00 × 45 = $360.00

This week: $8.00 × 42 = $336.00


Gabrielle Santos is a little league umpire.He earns $20 per game on weekdays and $25 per game weekends. He umpires 14 weekday games and 3 weekend games.

What is his total pay?


$355.00


J. Belconis124 items producedRate per item $.89

What is the total pay?


$110.36


Lesson Objective

Determine salary per pay period.

Content Vocabulary

salarysalary

A fixed amount of money earned on a regular basis.

salary

A fixed amount of money earned on a regular basis.

Beth Huggins is a computer programmer. Her annual salary is $42,648.

What is her monthly salary?

What is her weekly salary?

Example 1Example 1

Step: Find the salary per pay period.

Monthly: $42,648.00 ÷ 12 = $3,554.00

Weekly: $42,648.00 ÷ 52 = 52 = $820.15 $820.15


Michelle Giuseffi is a police officer. Her annual salary is $40,560.

What is her biweekly salary?


$1,560


Colin Evans is a hotel desk clerk who earns an annual salary of $21,216.

What is his weekly salary?


$408


Lesson Objective

Calculate straight commission and determine gross pay.

Content Vocabulary

commissioncommission

The amount of money paid for selling a product or service.

commission

The amount of money paid for selling a product or service.

commission rate

straight commission

commission rate

A specified amount of money paid for each sale or a percent of the total value of sales.

commission rate

A specified amount of money paid for each sale or a percent of the total value of sales.

straight commission

Pay that consists only of money earned from sales.

straight commission

Pay that consists only of money earned from sales.

Milton Arps sells real estate at a 7½ percent straight commission. Last week his sales totaled $290,000.

What was his commission?

Example 1Example 1

Step: Find the commission.

Total Sales × Commission Rate

$290,000 × 7½%

$290,000 × 0.075 = $21,750


Owen Theil is guaranteed a minimum salary of $250 a week, or 7 percent of his total sales, depending on whichever is greater.

What was his gross pay for a week in which his total sales were $3,614?

Example 2Example 2

Find the commission.

Total Sales × Commission Rate

$3,614 × 7% = $252.98


Find the gross pay.

Salary or Commission

$250 or $252.98

Gross pay is $252.98 (the greater amount).


Jermaine Dixon sells electronic equipment. He receives a straight commission of 6½ percent of his total sales.

What commission will he receive in a week where his sales total $12,416?


$807.04


Ryan O’Malley is paid either a commission or by the hour, whichever is greater. His hourly pay is $8.00 per hour with time and a half for all hours that exceed 40 hours per week. His commission is 7 percent of his sales. Find his gross pay in a week in which he worked 48 hours. His total sales for the week were $6,120.


$428.40


Lesson Objective

Compute total graduated commission.

Content Vocabulary

graduated commissiongraduated commission

Pay based on a different rate of commission for each of several levels of sales.

graduated commission

Pay based on a different rate of commission for each of several levels of sales.

Irene Gomaz sells appliances at Twin City Sales. She receives a graduated commission as shown:

4% First $1,0006% Next $2,0008% Over $3,000

Example 1Example 1

Gomaz’s sales for the past month totaled $9,840.

What is her commission for the month?

Example 1 (cont.)Example 1 (cont.)

Step: Find the sum of commission for all levels of sales.

Sales × Commission Rate

First $1,000 $1,000 × 4% = $ 40.00

Next $2,000 $2,000 × 6% = 120.00

Over $3,000 ($9,840 – $3,000) × 8%

$6,840 × 8% = 547.20

Total Graduated Commission $707.20


Pamela Miller sells musical instruments. She earns 6½ percent commission on the first $2,000, 8 percent on the next $3,000, and 10 percent on sales over $5,000.

Find the graduated commission on $7,368.


$606.80


Bob Elliott sells lumber. He earns 9 percent commission on the first $25,000, 11 percent commission on the next $30,000, and 15 percent on sales over $55,000.

Find the graduated commission on monthly sales of $56,575.


$5,786.25


SummarySummarySummarySummary

Types of Pay

Hourly PayStraight-Time Pay = Hourly Rate x Hours Worked

Weekly Time Card

Overtime Pay = Overtime Rate x Overtime Hours Worked

Pay Cycles

You can calculate your gross income if you know the frequency of your payment cycle.

SalaryA salary is a fixed amount of money that you earn on a regular basis.

Types of Commissions• Straight commission• Graduated commission

Piecework PayYou may be paid by the item of work completed.

1. ALGEBRA Sarah Ortiz works as a line worker in a factory. She earns $12.30 per hour. Last week she earned $430.50 straight-time pay. Find the number of hours worked by Sarah last week.

A. 25

B. 25½

C. 30

D. 35

2. Marshall Hopkins works as a medical technician. He earns $18.50 per hour for 40 hours and time and a half for overtime over 40 hours. If he worked 11 hours overtime, what is his total pay?

A. $943.50

B. $950.50

C. $1,045.25

D. $1,100.25

3. ALGEBRA Suri Ho earns $23.45 per hour. She starts work on Tuesday through Saturday at 8:00 am and takes an hour lunch break every day. If she ends work at 5:00 pm Tuesday through Friday, how late must she work on Saturday to have a total pay of $891.11 for the week?

A. 3:00 PM

B. 3:30 PM

C. 4:00 PM

D. 4:30 PM

4. Tim Jackson installs stripes, stickers, and cover snaps on jet skis. He is paid $15 per stripe, $10 per sticker, and $25 per cover snap. Last week, Jackson installed 20 stripes, 11 stickers, and 4 snaps. What was his total pay for the week?

A. $420

B. $450

C. $500

D. $510

5. José Penga was hired at an annual salary of $25,430. What is his biweekly salary?

A. $978.08

B. $985.50

C. $1,059.58

D. $1,075.80

6. Denise Robertson sells office supplies in the southeast region of the U.S. She earns a straight commission of 7% of all products purchased. What is her commission on sales of $5,690.85?

A. $375.50

B. $398.36

C. $411.90

D. $450.85

7. Last year, Maxwell Ackroyd sold a $1,700,000 apartment complex and earned a 3.5% commission. He also sold a $5,400,000 shopping center and a $7,300,000 commercial air field and earned a 2.2% commission. What was his total commission?

A. $158,900

B. $234,500

C. $338,900

D. $456,000

8. ALGEBRA Tonya Solberg sells lawn mowers. She is guaranteed a minimum salary of $1,500 per month plus 9.5% commission on total sales. How much in total sales does Tonya need in order to have a gross pay for the month of $3,250?

A. $17,500.00

B. $18,350.75

C. $18,421.05

D. $19,382.45

9. Mary Vincent sells computer supplies. She is paid a 7% commission on the first $15,000 worth of sales, 9% on the next $6,500, and 11.5% on all sales over $21,500. What is her commission on $24,300 worth of sales?

A. $1,957

B. $1,985

C. $2,309

D. $2,475

10. Bruce Gould is paid $7.50 per hour with time-and-a-half for all hours over 8 per day. He also earns commission of 5.4% on all sales. Last week Bruce worked 9 ½ hours each day Monday through Friday. His total sales for the week were $8,300. What is his gross pay?

A. $749.50

B. $809.40

C. $832.58

D. $1,540.25

End of

Chapter 1Gross Income

your reward for hard work your paycheck should reflect your gross income. why is it important to...

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