An employer pays each employee a minimum monthly salary of $400.00 plus $.80 per unit completed. What is the gross pay of an employee who completed a total of 1,425 units this month?
The gross pay of the employee is the sum of his monthly salary and the amount he gained as commission from selling the units. That is, gross pay = $400 + ($0.80)(1,425) = $1540 Thus, the employee's gross pay is equal to $1540.
