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QuizMultiple Choice

Variable Earnings

Question 1 • FL-2102373-Personal Finance and Money Management Honors

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?

Answer
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

Explanation

The worker receives a fixed hourly amount from the employer and also earns additional income through tips. This most closely resembles commission plus salary, where an employee earns a guaranteed base amount along with extra compensation tied to sales or performance. Straight commission has no guaranteed base pay, while piece-rate pay is based on units produced and a fixed salary is not supplemented this way.

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