Question

Outbound sales representatives at Alindu Magazines in Arizona receive a $16 commission on all new customers they sign up for new magazine subscriptions. Each outbound sales representative works 40 hours. During a weekly competition, the outbound sales representative who sold the most subscriptions was awarded a $155 bonus. Because these employees are paid solely on commission, the employer must ensure that they earn the minimum wage for 40 hours each week. Use Table 3-1.

Required:
Compute the gross pay for each of the following outbound sales representatives and the difference when the commission pay is less than the gross pay at minimum wage.

Number of New Customers Signed

H. Myers 51

M. Jenson 20

K. Bartels 58

T. Macklin 45

Answer 1

Minimum wages would be =$7.25×40hrs=$290

Now, gross pay=no.of subscriptions×Commission per subscription+bonus(if eligible)

H.Myers gross pay=51×$16=$816

M.Jenson gross pay=20×$16=$320

Bartels gross pay=58×$16=$928+$155(bonus)=$1083

T.Macklin gross pay=45×$16=$720

Note:all are above minimum wages and gross pay will be there pay and mr.bartels is only eligible for bonus has he is only made more number of subscriptions as on date

Minimum wages rate is $7.25 per hour is considered and solved the above