Lesson 1: Income - Tips

   Constructing Knowledge

Often waiters and waitresses earn tips from their customers if good service was provided. Although the employer pays the waiters and waitresses an hourly wage, the tips earned during a shift are additional income. The employer pays the wage; the customer pays the tip.

In several jobs, employees can earn tips along with their hourly wages. Waitresses, waiters, cab drivers, and hotel staff can earn wages as well as tips. The size of the tip varies depending on the job and the quality of service provided.

Usually, tips are calculated as a percent of the dollar amount attached to the service provided. To calculate the tip amount, multiply the tip percentage by the total bill. Often debit and credit machines will have buttons that perform automatic tip calculation.

The suggested amount for a tip or the gratuity is typically 15% to 20% of the total bill.

   Multimedia

A video describing calculating tips is provided.


EXAMPLE 1

Luke took his girlfriend out for supper, and the total bill was $47.00. If he tipped his waitress 15%, how much did he tip?

Solution


\(\begin{align} \text{tip}&=\text{15%}\times \text{totalbill} \\ \\ \text{tip}&=0.15\times \$47.00 \\ \\ \text{tip}&=\$7.05 \\ \end{align}\)

Luke tipped the waitress $7.05.

   Points to Ponder

Often in a restaurant, the waiters and waitresses share their tips with the cook. They also often give a portion of the tips they earn to other kitchen staff, such as busboys.

Tips are shared because it takes a team to prepare and serve food and drinks in a timely manner. Everyone who contributes to a positive customer experience shares in the tips.

Ordinarily in restaurants, 10% of the tips go to busboys and 15% goes to the person who cooks the meals.


Now, it is your turn! Complete the questions in your Chapter 1, Lesson 1 Practice Makes Perfect that refer to Tips.



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