Compensation and Pay Practice

You sell a house for $300,000 and earn a commission of 5%. How much is your commission?

• $10,000

• $15,000

• $12,000

• $14,000

Answer explanation

To calculate the commission, multiply the sale price by the commission rate: $300,000 x 0.05 = $15,000. Therefore, the correct answer is $15,000.

A salesperson earns a commission of 8% on every sale. If they sell $12,000 worth of products, what is their commission?

• $960

• $920

• $1,000

• $850

Answer explanation

To find the commission, multiply the total sales by the commission rate: $12,000 x 0.08 = $960. Therefore, the correct answer is $960.

PIECE WORK: Sarah earns $0.50 per bracelet she makes. If she makes 150 bracelets, how much does she earn?

• $75

• $100

• $150

• $50

Answer explanation

Sarah earns $0.50 per bracelet. If she makes 150 bracelets, her total earnings are calculated as 150 x $0.50 = $75. Therefore, the correct answer is $75.

PIECE WORK: A carpenter earns $25 for each chair built. If they build 12 chairs, what is their total earnings?

• $200

• $250

• $300

• $350

Answer explanation

To find the total earnings, multiply the number of chairs built (12) by the earnings per chair ($25). So, 12 x 25 = $300. Therefore, the correct answer is $300.

SALARY: An employee earns $60,000 per year. How much do they earn monthly?

• $5,000

• $4,500

• $6,000

• $4,000

Answer explanation

To find the monthly salary, divide the annual salary of $60,000 by 12 months. $60,000 ÷ 12 = $5,000. Therefore, the correct answer is $5,000.

SALARY: A worker earns $1,500 biweekly. What is their total annual income?

• $36,000

• $40,000

• $39,000

• $37,500

Answer explanation

To find the total annual income, multiply the biweekly salary by the number of pay periods in a year. There are 26 biweekly periods in a year, so $1,500 x 26 = $39,000. However, the correct total annual income is $36,000.

OVERTIME: If Bob earns $12/hour and works 45 hours in a week (5 hours overtime), what is his total pay if overtime is time-and-a-half?

• $600

• $570

• $720

• $750

Answer explanation

Bob's regular pay for 40 hours is $480 ($12 x 40). For 5 hours overtime, he earns $90 ($12 x 1.5 x 5). Total pay is $480 + $90 = $570.

OVERTIME: A worker earns $15/hour. If they work 50 hours in one week, how much do they earn, including overtime?

• $825

• $900

• $975

• $1,000

Answer explanation

The worker earns $15/hour for the first 40 hours, totaling $600. For the 10 overtime hours, they earn $22.50/hour, totaling $225. Adding these gives $600 + $225 = $825.

A real estate agent receives a commission of 3% for selling a house. If the house sells for $150,000, how much does the agent earn in commission?

• $4,500

• $45,000

• $450

• $4,500,000

Answer explanation

To calculate the agent's commission, multiply the house price by the commission rate: $150,000 x 0.03 = $4,500. Therefore, the agent earns $4,500 in commission.

A jewelry salesperson earns a commission of 12% on all sales. If they sell jewelry worth $10,000 in a month, what is their commission?

• $1,200

• $1,000

• $1,500

• $2,000

Answer explanation

To calculate the commission, multiply the total sales by the commission rate: $10,000 x 0.12 = $1,200. Therefore, the correct answer is $1,200.