Learning Target: Identify The Steps of Selling

Learning Target
Identify the steps of Selling.

Gross Pay
 Find the gross pay per paycheck based on
salary.
 Find the gross pay per weekly paycheck based
on hourly wage.
piecework wage.
commission.
Find the gross pay per paycheck
based on salary
Pay periods
 Weekly: once a week or 52 times a year.
 Biweekly: every two weeks or 26 times a
year.
 Semimonthly: twice a month or 24 times a
year.
 Monthly: once a month or 12 times a year.
Find the gross earnings
per pay period.
 Ruth earns $36,000 a year. If she is paid on a
weekly basis, what is her gross pay per week?
 Divide $36,000 by 52 pay periods.
 $692.31
 What if she is paid on a semimonthly basis?
 $1,500.00
Try these examples.
Find the gross earnings for:
 Carolyn, who earns $15,000 a year and is paid
weekly.
 $288.46
 Martha, who earns $48,000 a year and is paid

biweekly.
 $1,846.15
 Bill, who earns $35,000 a year and is paid

semimonthly.
 $1,458.33
Key Terms
 Gross earnings (gross pay): the amount

earned before deductions.
 Net earnings (net pay/take-home pay): the

amount of your paycheck.
Key Terms
 Hourly rate or hourly wage: the amount of pay
per hour worked based on a standard 40 hour
work week.
 Overtime rate: rate of pay for hours worked

that exceed 40 hours per week.
 Time and a half: standard overtime rate that is

1½ (or 1.5) times an hourly rate.
Key Terms
 Regular pay: earnings based on an hourly

rate of pay.
 Overtime pay: earnings based on overtime

rate of pay.
Find the gross pay per week based
on hourly wages.
1. Find the regular pay by multiplying the number

of hours (40 or less) by the hourly wage.
2. Find the overtime pay by multiplying the hourly
rate by the overtime rate (usually 1.5) and then
multiply that rate by the number of hours that
exceed 40.
3. Add the figures from steps 1 and 2.
Here’s an example.
 Theresa worked 45 hours last week. If her
hourly rate is $10.50 per hour, find her total
gross earnings.
 Multiply 40 x $10.50 = $420.00
 To calculate the overtime amount, multiply her
hourly rate by 1.5: $10.50 x 1.5 = $15.75.
 Multiply the overtime rate ($15.75) x the number
of overtime hours (5): $15.75 x 5 = $78.75.
 Add the regular and overtime pay: $498.75
10
Try these examples.
 The regular hourly rate in the production
department for these employees is $6.50.
 Overtime is paid at 1.5
 Find the weekly earnings for these employees:

 Marcus worked 48 hours.
 $338
 Allison worked 44 hours.

 $299
.3 Find the gross pay per paycheck
based on piecework.
 Piecework rate: amount of pay for each
acceptable item produced.
 Straight piecework rate: piecework rate where
the pay per piece is the same no matter how
many items are produced.
 Differential piece rate (escalating piece rate):
piecework rate that increases as more items are
produced.
Here’s an example
 Jorge assembles microchip boards. He is paid
on a differential piecework basis.
 Rates are as follows:
 From 1-100 $1.32 per board
 From 101-300 $1.42 per board
 301 and over $1.58 per board
 If he assembles 317 boards how much will he
earn?
Jorge’s earnings
 100 x $1.32 = $132.00

 101-300 x $1.42= $284.00
 17 x $1.58 = $ 26.86
 Total earnings: $442.86
Find the gross pay per paycheck
based on commission
 Commission: earnings based on sales.
 Straight commission: entire pay based on sales.
 Salary plus commission: a set amount of pay plus an
additional amount based on sales.
 Commission rate: percent of sales that are eligible for
a commission.
 Quota: a minimum amount of sales that is required
before a commission is applicable.
Here’s an example.
Shirley Garcia is a restaurant supplies salesperson

and receives 5% of her total sales as
commission. Her sales totaled $15,000 during a
given week. Find her gross earnings.
 P = 0.05 x $15,000 = $750.

 Shirley’s earnings equal $750.
Try this example.
 Melanie Brooks works for a cosmetics company
and earns $200 a week in salary plus 30%
commission on all sales over $500. If she had
sales of $1,250 last week, how much were her
total earnings?
 Her salary would be $200 plus any applicable
commission.
 The commission would be calculated at 30% on
$750 in sales or $225. Add this amount to her
base salary and the total is $425.

Learning Target: Identify The Steps of Selling

Uploaded by

Copyright:

Available Formats

Learning Target: Identify The Steps of Selling

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Learning Target: Identify The Steps of Selling

Uploaded by

Copyright:

Available Formats

Learning Target

Identify the steps of Selling.

 Martha, who earns $48,000 a year and is paid

 Bill, who earns $35,000 a year and is paid

 Gross earnings (gross pay): the amount

 Net earnings (net pay/take-home pay): the

 Overtime rate: rate of pay for hours worked

 Time and a half: standard overtime rate that is

 Regular pay: earnings based on an hourly

 Overtime pay: earnings based on overtime

1. Find the regular pay by multiplying the number

 Find the weekly earnings for these employees:

 Allison worked 44 hours.

 100 x $1.32 = $132.00

Shirley Garcia is a restaurant supplies salesperson

 P = 0.05 x $15,000 = $750.

You might also like