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Chapter 1


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Chapter 1

  1. 1. ACOS Objective Algebra 1: Use algebraic techniques to make financial and economic decisions.
  2. 2. What We Will AccomplishWhat We Will Accomplish Section 1-1Section 1-1 Section 1-2Section 1-2 Calculate straight-time pay. Figure out straight-time, overtime, and total pay. Calculate the total hours on a weekly time card. Compute the total pay on a piecework basis. Section 1-Section 1-33 Section 1-Section 1- 44 Section 1-5Section 1-5 Section 1-6Section 1-6 Determine the salary per pay period. Calculate the straight commission and determine the gross pay. Compute the total graduated commission.Section 1-Section 1-77
  3. 3. People rarely work for free. When you do work and get paid, it’s important to know how to calculate your gross income. Did you know… According to the U.S. Bureau of labor Statistics, the average national wage for a full-time worker over 25 years old, with a high school diploma, was $26,000, while the average wage for a full-time worker over 25 years old, with a four-year degree, was $40,100 (which is 54% more).
  4. 4.  Some jobs pay you a fixed amount of money for each hour you work, which is called the hourly rate.  Ex: You work at the local movie theater, you are paid $7.50 an hour to sweep up popcorn and tear ticket stubs.  $7.50 is the hourly rate
  5. 5. * If the manager schedules you to work 15 hours a week, these hours are important in finding out your straight time pay. *Straight time pay: The total amount of money you earn for a pay period at the hourly rate. Straight Time Pay = Hourly Rate x Hours Worked
  6. 6. 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? Step: Find the straight-time pay. Last week: $8.40 × 40 = $336.00 This week: $8.40 × 39½ = $331.80 AnswerAnswer
  7. 7. 1. A local car wash pays you $8.00 per hour. Last summer you worked 35.25 hours a week. What was your total straight time pay for the entire week? 2. Dominic is a machine operator at the Donovan Manufacturing Corporation. He works 37.875 hours per week and earns $9.755 per hour. What is his straight-time pay each week? 3. Steve is a plumber. He earns $28.75 per hour. He works 39¾ hours. What is his straight-time pay?
  8. 8. When you work more than your regular hours, you might receive overtime pay. The overtime rate might be 1 ½ times your hourly rate. This is called time and a half. You may receive double time, or two times your regular hourly rate.
  9. 9. Overtime Pay = Overtime Rate x Overtime Hours Total Pay = Straight Time Pay + Overtime Pay The total pay is often called gross pay.
  10. 10. 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?
  11. 11. Step 1 :Step 1 : Find the straight-time pay. Hourly Rate × Regular Hours Worked $8.20 × 40 = $328.00 Step 2:Step 2: Find the overtime pay. Overtime Rate × Overtime Hours Worked (1.5 × $8.20) × 10 = $123.00 Step 3:Step 3: Find the total pay. Straight-Time Pay + Overtime Pay $328.00 + $123.00 = $451.00 Example 2 AnswerExample 2 Answer
  12. 12. Josie Spelling earns $9.00 per hour and works 40 hours per week. Because she had to work on Thanksgiving, her employer paid her time and a half for the additional 6 hours she put in. Find her total pay.
  13. 13. Dorothy, a computer programmer, earns a regular hourly rate of $15.25 and earns double that when she works overtime. She usually works 40 regular hours and 12 hours overtime this month as she tries to update the company’s systems. What is her straight time pay? What is her overtime pay? And gross pay?
  14. 14. Nadia 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? More PracticeMore Practice
  15. 15. Weekly time cards show when you reported to work and when you left each day. They are an easy way to keep up with how much you worked. Why is this important? Total Hours = Sum of daily hours
  16. 16. Gail is required to keep a weekly time card. What are her daily hours for September 18? What are her total hours for the week?
  17. 17. Step 1:Step 1: Find the hours worked on September 18. Before Lunch: Time between 8:15 A.M. and 1:45 P.M. (1:45 + 12:00) – 8:15 13:45 – 8:15 = 5h 30min After Lunch: Time between 2:15 P.M. and 4:59 P.M. 4:59 – 2:15 = 2h 44 min Total on September 18: 5h 30min + 2h 44min = 7h 74min Round to the nearest quarter hour = 8¼ Example 3 Answer:Example 3 Answer:
  18. 18. Step 2:Step 2: 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 3 Answer:Example 3 Answer:
  19. 19. 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?
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  21. 21. Some jobs may pay you on a piecework basis. This is when you receive a specified amount of money for each item of work that you complete. Total Pay = rate per item x # of items produced  Is it better to be paid on an hourly rate or by piecework?
  22. 22. Washing a car, delivering newspapers, sewing clothing, painting a house, or cutting a lawn.
  23. 23. Ray 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? Step: Find the total pay. Last week: $8.00 × 45 = $360.00 This week: $8.00 × 42 = $336.00
  24. 24. Gabe 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
  25. 25. Jay: 124 items produced Rate per item $.89 What is the total pay? $110.36
  26. 26. Salary = a fixed amount of money that you earn on a regular basis. Salaries might be weekly, biweekly, semimonthly, or monthly. Annual salary- total salary you earn during a year. Does your boss expect less from you when you become a salaried employee?
  27. 27. There are 52 weekly, 26 biweekly, 24 semimonthly, and 12 monthly pay periods per year. Salary per Pay Period= YearperPeriodsPayofNumber SalaryAnnual
  28. 28. Beth Huggins is a computer programmer. Her annual salary is $42,648. What is her monthly salary? What is her weekly salary? 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
  29. 29. A. Michelle Giuseffi is a police officer. Her annual salary is $40,560. What is her biweekly salary? B. The city of Carson advertised for a development project manager at a monthly salary of $5,480. What is the annual salary? What is the weekly salary? $1,560 Annual Salary: $65,760 Weekly Salary: $1,264.62
  30. 30. C. Colin Evans is a hotel desk clerk who earns an annual salary of $21,216. What is his weekly salary? $408
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  32. 32. Often times, retail positions pay you in commission. This is the amount of money that you are paid for selling a product or a service. What are the risks involved in working on commission?
  33. 33.  Commission rate = specified amount of money for each sale or it might be a percent of total value of your sales  Straight Commission = the commission is the only pay you receive.  Commission = Total Sales x Commission Rate
  34. 34. Step: Find the commission. Total Sales × Commission Rate $290,000 × 7½% $290,000 × 0.075 = $21,750
  35. 35. Your gross pay is the greater of the two amounts. Example 7: Owen is guaranteed a minimum salary of $250 a week, or 7 percent of his total sales, depending on whichever is greater. What is his gross pay for a week in which his total sales were $3,614 $252.98
  36. 36. 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
  37. 37. 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
  38. 38.  Your commission rate may increase as your sales increase.  Graduated commission is pay in which the commission rate is different for different levels of sales.  It provides an extra incentive to sell more.  Describe the kind of personality a salesperson has. How does this influence his or her sales?
  39. 39. Irene Gomaz sells appliances at Twin City Sales. She receives a graduated commission as shown: 4% First $1,000 6% Next $2,000 8% Over $3,000 Gomaz’s sales for the past month totaled $9,840. What is her commission for the month?
  40. 40. 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 Example 8 AnswerExample 8 Answer
  41. 41. 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
  42. 42. 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
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  44. 44.  What is the difference in the way hourly and salaried employees are paid? Hourly employees are paid a certain amount for each hour they work. They usually record their hours on a time card. Salaried employees are paid a fixed amount per year. They do not record the number of hours they work. They are generally paid the same amount regardless of the number of hours they work.
  45. 45.  Why do you think some companies pay their employees piecework instead of by the hour? Answers may vary. A reason companies may decide to pay their employees piecework would be to motivate them to produce as many items as possible during their workday. For example, if an employee is paid a certain amount for each table he assembles, he may assemble more tables during an eight-hour workday than an employee who is paid by the hour.
  46. 46.  Why are people who work in sales often paid on commission? Managers believe that salespeople will sell more if they are paid a percentage of sales instead of being paid a salary or by the hour.