BUSINESS MATHEMATICS SALARIES AND WAGES

Question 1

Gross pay / Gross earnings

Answer 1

The total amount of employee’s earnings before deductions.

Maybe in the form of salary or wage.

Question 2

Wages

Answer 2

Monetary remuneration computed on hourly, daily, weekly, or piecework basis.

Question 3

Salary

Answer 3

Fixed weekly or monthly wage

Question 4

Formula

Answer 4

Weekly salary = Annual Salary / 52
Biweekly = Annual Salary / 26
Semi-Monthly Salary = Annual Salary / 24
Monthly Salary = Annual Salary / 12

Question 5

Commission

Answer 5

Way of compensating employees who sell company’s commodities or services

Question 6

Straight Commission

Answer 6

Way of compensating employees who sell company’s commodities or services

Question 7

Commission = Commission Rate x Amount of Sales

Answer 7

Commission = 0.038 x 3,000,000
Commission = P114,000
Thus, Gabriel’s total commission is P114,000.

Question 8

Incremental Commission or Graduate Commission

Answer 8

• Given to salesperson who does not receive a regular salary
• Commission rate increases as the sales volume increases

Question 9

Given:
Commission Rate (Level 1) = 2.5% or 0.025
Commission Rate (Level 2) = 3% or 0.03
Commission Rate (Level 3) = 4% or 0.04

Sales 1 = P100,000
Sales 2 = P150,000
Sales 3 = P 50,000

Answer 9

Commission Rate (Level 1) = 2.5% or 0.025
Commission Rate (Level 2) = 3% or 0.03
Commission Rate (Level 3) = 4% or 0.04

Sales 1 = P100,000
Sales 2 = P150,000
Sales 3 = P 50,000

Question 10

Level Pay

Answer 10

Sales per level x Commission rate

Level Pay 1 = P100,000 x 0.025
Level Pay 1 = P2,500

Level Pay 2 = P150,000 x 0.03
Level Pay 2 = P 4,500

Level Pay 3 = P 50,000 x 0.04
Level Pay 3 = P 2,000

Total Gross Pay = Level 1 + Level 2 + Level 3

Total Gross Pay = P2,500+P4,500+P2,000

Total Gross Pay = P 9,000

Question 11

Level Pay

Answer 11

Sales per level x Commission rate

Level Pay 1 = P100,000 x 0.025
Level Pay 1 = P2,500

Level Pay 2 = P150,000 x 0.03
Level Pay 2 = P 4,500

Level Pay 3 = P 50,000 x 0.04
Level Pay 3 = P 2,000

Total Gross Pay = Level 1 + Level 2 + Level 3

Total Gross Pay = P2,500+P4,500+P2,000

Total Gross Pay = P 9,000

Question 12

SALARY PLUS COMMISSION

Answer 12

Employee is being paid a guaranted salary plus a commission on total sales

Question 13

Given:
Joney dela Fuente works on a pay schedule of P21,300 per month plus a 3% commission on all sales. If she sold P104,900 last month, what is her total gross pay?

Answer 13

Salary = P21,300
Commission Rate = 3% or 0.03
Amount of Sales = P104,900

Question 14

Commission

Answer 14

Commission Rate x Amount of Sales

Question 15

Commission = 0.03 x P104,900
Commission = P 3,147

Gross Pay = Salary + Commission
Gross Pay = P 21,300 + P3,147
Gross Pay = P 24,447

Answer 15

answer

Question 16

Bonus Commission

Answer 16

Salesperson is given a bonus if he or she exceeds his or her sales quota.

Question 17

Given:
Leonora receives a basic salary P13,750 a month. She also receives a bonus of 5% of the amount by which she goes beyond her quota of P75,000. For the month of March her sales amounted to P128,000. What were her total earnings?

Answer 17

Salary = P13,750
Commission Rate = 5% or 0.05
Sales subject to commission = P128,000 – P75,000 = P53,000

Question 18

Commission = Commission Rate x Amount of Sales

Commission = 0.05 x P 53,000
Commission = P2,650

Answer 18

Gross Pay = Salary + Commission
Gross Pay = P13750 + P2,650
Gross Pay = P16,400

Question 19

Commission with Override

Answer 19

A salesperson earns a commission on his/her own sales and also earns commission from the sales of his/her representatives.