Module 8

1. Module 8

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Mathematics 10-3 Module 8 Lesson 5

Module 8: Daily Living

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tip (gratuity): payment for services rendered above and beyond one’s wages

Tips are commonly freely given by the customer. Tips vary in size or percentage. Servers in restaurants are often rewarded for exemplary service through tips.

commission: part of income, usually quoted as a percent of a sale or business transaction

Salespeople often receive part or all of their earnings through commissions.

Have you considered an occupation that involves earning income through tips and commissions? Do you work in a restaurant or clothing store? If yes, then you might already have a job that involves one of these methods of earning income.

It is time to investigate jobs and occupations involving tips or commissions.

Start your exploration by listening to “Salespeople and Minimum Wage.”

In Lesson 4 you examined the minimum wages employees are guaranteed by law. What about people who earn tips?

Example 1

Jolene works as a salesperson at a bicycle shop in Cold Lake, Alberta. Normally she makes a good living being paid only by a commission on her sales. However, last January, sales were slow. Here are her commissions on sales for the four-week period. The same data is displayed in a table and in a graph.

This is a graph showing the commission earned on sales over a four-week period.

Jolene Dumas	Commissions on Sales
Week 1	$415.00
Week 2	$310.20
Week 3	$274.80
Week 4	$385.50

What will Jolene’s gross pay be for the month of January? Jolene does not record her hours.

Solution

In week 2 and week 3, Jolene made less than the minimum $352.00/wk to which she is entitled according to the minimum wage in effect in 2010. So, her employer will pay her $352.00 for each of those weeks.

Jolene’s gross pay for January is $1504.50.

Self-Check

These questions refer to Example 1.

SC 1. What is the purpose of the law that guarantees Jolene at least $352.00/wk?

SC 2. Suppose Jolene were required by her boss to record her hours. Suppose she worked 40 h each week. What is the minimum her weekly earnings would be?

SC 3. How did the province come up with $352.00/wk as a minimum wage for salespeople who do not record their hours?

Compare your answers.