Question

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Compute the gross earnings for each of the individuals below, rounding each to the nearest cent.

Julie Foudy, an equipment manager, earns $745 for a fluctuating workweek. Overtime work is one-half times the regular rate beyond the 40 hours. Julie worked 7 hours overtime.

1. Julie's gross earnings = $

Assume Julie's employer computes his pay based on 40-hours per week.

1. Julie's gross earnings = $

Brandi Chastain, a soccer promotions sales representative, earns an annual base salary of $67,000 and her sales quota is set at $795,000. If she exceeds her quota, she will receive a 7% commission for sales in excess of her quota. For the current year, she has sales of $850,000.

Brandi's gross earnings = $

Hope Solo earns $15.15 per hour and has earned a scoring bonus this week of $45.50. In addition, she worked 6 hours of overtime.

1. Hope's gross earnings = $

Answer 1

Case 1: Julie Foudy

Total earnings for the week (including overtime) = 745
Total hours worked (including overtime) = 40 + 7 = 47

Let the normal wage rate be = x
Therefore, overtime wage rate is = 1.5x

The information can be represented as the following equation
= (40 * x) + (7 * 1.5x) = 745
= 40x + 10.5x = 745
= 50.5x = 745
= x = $ 14.75 per normal hour
and 14.75 * 1.5 = $ 22.13 per overtime hour

Therefore, Gross earnings = (14.75 * 40) + (22.13 * 7) = $ 745

Case 2: Julie's employer computes his pay based on 40-hours per week

Normal wage rate = $745 / 40 hours = $ 18.625

therefore, overtime wage rate = 18.625 * 1.5 = $ 27.94

Therefore, Gross earnings = (18.625 * 40) + (27.94 * 7) = $ 940.6

Case 3: Brandi Chastain

Current year actual sales = $850,000
Fixed sales quota = $795,000
Therefore, quota exceeded by = $ 55,000
Rate of commission = 7%
Therefore, Commission earned = 3850

Gross annual earnings = annual base salary + commission = 67000 + 3850 = $ 70850

Case 4: Hope Solo

Assumptions : hours per week = 40 hours
Overtime work is one-half times the regular rate beyond the 40 hours

Therefore, Gross earnings = normal wage + overtime wage + weekly bonus

= ($15.5 * 40 hours) + [ ($15.5 * 1.5) * 6 hours ] + $45.5 = $805