 Make a list o fall the jobs you’ve had.  If you haven’t had a job, make a list of your parents or a relatives.  Next to each job explain how, when, and what you were paid.  ie: frequency, money, products, etc. STARTER

Gross Income UNIT 1 - BUDGETING

Why is it important to know when and how you’re getting paid?

 Using an hourly rate and the number of hours worked to calculate your pay.  Formula: Straight-time pay = hourly rate x hours worked STRAIGHT – TIME PAY

 Getting paid more per hour because you have worked more than the regular number of hours.  Formula: Overtime pay = overtime rate x overtime hours Total pay = straight-time pay + overtime pay OVERTIME PAY

 Receiving a specified amount of money for each item of work completed.  Ex: Petitions  Formula: Total Pay = Rate per Item x Number of items Produced PIECEWORK

 A fixed amount of money that you earn on a regular basis.  Can be paid weekly, bi-weekly, monthly, etc.  Formula (Per pay period): Salary per pay period = Annual Salary. # of Pay periods per year SALARY

 Getting paid a percentage of the total value of your sales.  Formula: Straight Commission = Total Sales x Commission Rate COMMISSION

 Offers a different rate of commission for each level of sales.  Formula: Sum of the commissions from all sale levels. GRADUATED COMMISSION

 Shawna Nguyen is a clerk at a gas station. She earns $9.50 per hour. This week she worked 22.5 hours. What is her straight – time pay for the week? EXAMPLE 1

 Ralph Thompson works at a movie theater. He earns $8.50 per hour. How many hours per week must he work if he wants to earn approximately $300 per week? EXAMPLE 2

 Alana Moore is paid $8.20 an hour for a regular 40-hour week as a restaurant host. Her overtime rate is 1 ½ times her regular hourly rate. This week she worked her regular 40 hours plus 10 hours of overtime. What is her total pay? EXAMPLE 3

 Help Alana (from above) figure out how many hours she should work to make approximately $500 in one week. EXAMPLE 4

 John Locke silk-screens prints for a local artist who pays $4 for each print he completes. Last week he silk-screened 75 prints. This week he completed 71. What is his pay each week? EXAMPLE 5

 Tom’s salary as a web site designer is $67,400. Approximately how much income will Tom have to use in his monthly budget? EXAMPLE 6

 Bob Anderson sells commercial real estate at a 7.5% straight commission. Last week his sales totaled $290,000. What was his commission? EXAMPLE 7

 Marcia Stain works at Buckle where she is guaranteed a minimum salary of $350 per month plus commission of 5.45% of her total sales. How much was Marcia’s paycheck if she sold $460 of merchandise? EXAMPLE 8

 Irene Gomez sells appliances at Twin City Sales. She receives a graduated commission as shown in the table. Irene’s sales for the past month totaled $9,840. What was her commission for the month? EXAMPLE 9 Commission % Level of Sales 4%First $1000 6Next $2000 8Over $3000