Other methods of payment

EG+S

1 Calculate each of these commissions.

a 5% on sales of $12 000 b 2 % on sales of $9442 c 6.8% on sales of $3127 2 Kerrie is paid a commission of 12% on all perfume sales that she makes. Find her

commission for a week when she sells perfume products to the value of $2340.

3 A telesales representative is paid a fortnightly commission of 13.5% on the total value of his sales. Find his commission for the previous fortnight when sales totalled $4200.

4 A factory worker is paid 22c for each gadget she constructs on the assembly line. Calculate her pay for a week in which she constructs 2135 gadgets.

5 Karen is a textile worker who receives $11.75 for each garment she knits. How many garments did Karen knit last week if she was paid $411.25?

Example 2

A printer charges $0.60 for each colour pamphlet produced and $0.15 for each black and white leaflet. How much would he receive for printing 250 colour pamphlets and 600 black and white leaflets?

Solution

Total pay= (250 × $0.60) + (600 × $0.15)

= $150 + $90

= $240

Example 3 Trudi is a swimming instructor. She charges $15 per lesson for children aged 5 to 10 years and $12 per lesson for children aged 11 to 15 years. She is paid $219 altogether for her 8 am class on Saturday morning. If 9 of the children are aged between 5 and 10 years, how many children are aged between 11 and 15 years?

Solution

i Pay for children 5–10 years= $15 × 9

= $135

ii Pay for children 11–15 years= $219 − $135

= $84

iii Number of children 11–15 years= $84 ÷ $12

= 7

∴ There are 7 children in the 11–15 years age group.

EG+S

EG+S

Exercise 3.2

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---■ Consolidation

6 Bill and Ben are furniture salesmen. Bill is paid a commission of 2 % on his weekly sales, while Ben is paid an annual salary of $29 500. Last week Bill sold furniture to the value of

$23 600. Who received the greater pay last week, and by how much?

7 Mohammed’s rate of commission was 7.5% in December and rose to 8% in January.

Calculate Mohammed’s total pay for these two months if his sales amounted to $27 800 in December and $29 250 in January.

8 Petra is a sales representative for a large pay TV company. She is paid a weekly retainer of

$165 plus a commission of $25 for each new customer that she signs up. Find Petra’s total pay for a week when she signs up 17 new pay TV customers.

9 Tonia’s weekly pay consists of a retainer of $240 plus a commission of 6 % on her sales.

Calculate Tonia’s total pay for the week in which her daily sales were:

• Mon.—$480 • Tues.—$535 • Wed.—$513

• Thurs.—$675 • Fri.—$608 • Sat.—$320

10 Norito is paid a basic fortnightly salary of $395 as well as a commission of 18% on the value of all sales in excess of $16 500. Calculate his pay for a fortnight where his sales totalled $21 475.

11 A real estate agent is paid a commission of 3% on the first $180 000 of the value of a property and 2% on the remaining value. Find her total commission on the sale of each of the following properties.

a A home unit sold for $175 000 b A house sold for $263 000

12 Miss Elle Itquik is a real estate agent. To sell a property, she charges a commission of 3 % on the first $200 000 of the value of the property, 2 % on the next $150 000 and 1% on the remaining value. If the house is sold at auction, there is an additional auction fee of $2875.

How much will she receive for selling a house at auction for $865 000?

13 Wade sold goods last week to the value of $7260. His pay for the week was $535.40, which comprised a retainer plus a commission of 4% on his sales. How much is Wade’s retainer?

14 Joshua is employed to sell earth-moving equipment to construction companies. He is paid an annual salary of $22 400 plus a commission of 11% on all sales in excess of $440 000.

Calculate his average fortnightly pay for a year when he sells $469 300 worth of equipment.

15 Roy is a junior Rugby League referee. He is paid $65 for each game that he referees on weekdays and $85 for each weekend game. Find his total pay for a week in which he referees games on Tuesday and Thursday evenings, two games on Saturday and another game on Sunday.

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---16 Joy takes in extra ironing to help pay the bills. She charges $12 per basket for shirts and $7 per basket for trousers. Altogether Joy was paid $117 for 3 baskets of trousers and several baskets of shirts. How many baskets of shirts did she iron?

17 A doctor charges $22.50 for consultations that last less than 10 minutes and $28.75 for those that last longer than 10 minutes. How much will she be paid for a day in which she sees 19 patients each for less than 10 minutes and 14 patients for longer than 10 minutes?

18 To pick up and deliver furniture the TLC Removal Company charges customers $50 per hour for 2 men and $70 per hour for 3 men. The hourly rates apply from the time the truck leaves the depot until its estimated return. There is an extra fee of $75 for customers moving to or from an above-ground floor unit or double storey house.

a Calculate the total fee payable on a job where the truck leaves the depot at 7:30 am and returns at 2:30 pm, 3 men are needed and the furniture is being delivered from a top-floor unit to a house.

b If the company takes 34% of the money and the men split the remainder equally, find the amount that each man will be paid.

19 An advertisement is placed in the major newspapers for experienced fruit pickers to pick grapes in South Australia. The successful applicants are to be paid $180 per day, as well as a dislocation allowance of $35 per week if they are from interstate. How much would an experienced fruit picker from New South Wales earn if she was hired to pick grapes for 12 weeks?

20 Paul is a car windscreen fitter. He pays $110 for each standard windscreen and charges a mark-up of 15% plus $28 for labour. Calculate Paul’s profit for a day when he installs 6 windscreens.

21 Adam runs a small printing company. He charges $21.80 to print 100 personal business cards and $43 to print 50 colour brochures. How much will Adam be paid by a customer who orders 350 business cards and 4000 colour brochures.

22 Deborah is contracted by a local toy store to make teddy bears. She is paid $8.20 per bear for the first 40 bears, then $9.35 for each bear thereafter. How much will Deborah be paid in a month where she makes 48 teddy bears?

23 As a travelling salesman, Nathan is paid a weekly retainer of $140, a commission of 8% on his sales, plus a travel allowance of 48c per kilometre. The table below shows his daily sales and distance travelled for the first week of February.

a Find Nathan’s total sales.

b How far did he travel altogether?

c Calculate Nathan’s total pay for the week.

Sales

Distance travelled (km)

Monday $942 215

Tuesday $564 72

Wednesday $1088 148

Thursday $740 95

Friday $916 266

Saturday $625 310

24 A stockbroker purchases 15 000 NRMA shares at $2.72 per share on behalf of a client. Her brokerage fees are 2% on the first $2000 and 1.5% on the remaining value of the shares.

a Calculate the purchase price of the shares.

b How much will the broker receive in fees?

25 Tony the television repairman charges a call-out fee of $35, $42 per hour for labour, plus the cost of parts. Mrs Anania books Tony to come to her house and repair the family’s television set. The job takes 2 hours and requires new parts to the value of $55. How much should Tony charge for the repair job?

■ Further applications

26 Diana is paid a retainer of $255 per week as well as a commission based on the value of her weekly sales. By the end of the week she had sold $10 400 worth of automobile parts to several retailers. If her total pay for the week was $463, find Diana’s rate of commission.

27 Roberta is a real estate agent. To sell a property, Roberta charges 3% on the first $200 000 of the value of a property, 2.5% on the next $150 000 and 2% on the remaining value. If the property is sold at auction, she charges an extra $2350. Roberta successfully auctioned a property and was paid $20 000 altogether in commission and auction fees. What was the sale price of the property?

Overtime is extra time worked beyond the regular number of hours. Overtime hours are usually paid at 1 times or 2 times the normal hourly rate of pay. Such overtime rates are commonly called ‘time and a half’ or ‘double time’ respectively.

A bonus is an extra payment or other benefit given to an employee as a reward for exceptional performance in their job.

Holiday leave loading is a bonus given to all permanent wage and salary earners and some other employees when they take their annual holidays. Employees are paid an additional 17 % of 4 weeks normal pay, assuming that they take the maximum 4 weeks leave all at once.

Example 1

Ethan earns $15.10 per hour for a 38-hour week as an electrician. Overtime is paid at the time and a half rate for the first 5 hours and double time thereafter. Calculate Ethan’s pay for a week when he works for 46 hours.

Solution

The first 38 hours are paid at the normal hourly rate, the next 5 hours are paid at 1.5 times the normal hourly rate and the final 3 hours are paid at twice the normal hourly rate.

Pay= (38 × $15.10) + (5 × 1.5 × $15.10) + (3 × 2 × $15.10)

= $573.80 + $113.25 + $90.60

= $777.65

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