Variable Earnings Answers

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4

Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

A
Straight commission of 6% on all sales.
B
Monthly salary of $1,500 plus 3% commission on all sales.
C
Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that.
D
Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.
6

Which of the following statements is always true?

A
Workers being paid on commission make less money than if they are salaried.
B
Workers being paid on commission have a salary that varies based on their performance.
C
Workers being paid on commission are stressed over the amount of earnings they will have.
D
Workers being paid on commission increase the accounting costs of the employer.
8

A restaurant worker earns a set amount per hour from their employer. They also receive tips from customers. Their earnings most closely resemble those of which of the following?

A
An employee working on straight commission
B
An employee working on commission plus salary
C
An employee working on a piece-rate basis
D
An employee working on a fixed salary
14

Which of the following statements is always true?

A
Workers being paid on commission make less money than if they are salaried.
B
Workers being paid on commission have a salary that varies based on their performance.
C
Workers being paid on commission are stressed over the amount of earnings they will have.
D
Workers being paid on commission increase the accounting costs of the employer.

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Variable Earnings Answers — 26-27 DAEP Financial…