Lesson 1: Income - Calculating Piecework

   Constructing Knowledge

When calculating piecework, you may need to do the calculations in multiple steps.

  • Is the piecework graduated?
  • Is there any base pay in the payment structure?

To calculate the total gross pay;

  1. Calculate all levels of piecework individually.
  2. Add any base pay to the piecework calculations.

EXAMPLE 1


Keiko is a table maker who earns $45 for every small end table she makes. If she made 35 tables last week, what was Keiko's gross pay?

Solution


Step 1. There is only one level of pay: $45 per table.

piecework pay = $45.00 × 30
= $1575.00

Step 2. There is no base pay.

Keiko's gross pay for the week was $1 575.00.

   Multimedia

A video describing the calculation of piecework is provided.



EXAMPLE 2


Lian got an after-school job doing mail-outs for a mail order company. She was paid $20 per day plus a piecework wage. For the first 200 letters she receives $0.20/letter, for the next 50 letters she receives $0.30/letter, for the next 25 letters she receives $0.40/letter and for all letters over 275, she receives $0.45/letter.

Wednesday she mailed 242 letters.
Friday she mailed 282 letters.

How much did she earn in total for the two days work?

Solution


Lian worked two days, so she will receive a base pay of $20 per day. Plus, she will receive graduated piecework pay for the number of letters she mailed.

Step 1: Piecework pay

Calculate Lian's piecework pay for each of the days.

Wednesday: 242 letters

  • 200 letters are paid at the rate of $0.20/letter
  • 42 letters are paid at the rate of $0.30 /letter

Wednesday piecework

pay = 200 letters at $0.20 + 42 letters at $0.30
= 200 × $0.20 + 42 × $0.30
= $40.00 + $12.60
= $52.60

Wednesday's piecework pay was $52.60.

Friday: 282 letters

  • 200 letters are paid at the rate of $0.20/letter
  • 50 letters are paid at the rate of $0.30/letter
  • 25 letters are paid at the rate of $0.40/letter
  • 7 letters are paid at the rate of $0.45/letter

Friday piecework pay

pay = 200 letters at $0.20 + 50 letters at $0.30 + 25 letters at $0.40 + 7 letters at $0.45
= 200 × $0.20 + 50 × $0.30 + 25 × $0.40 + 7 × $0.45
= $40.00 + $15.00 + $10.00 + $3.15
= $68.15

Friday's piecework pay was $68.15.

Step 2: Base pay

base pay = $20.00/day × 2
= $40.00

Total all Lian's earnings from base pay and piecework.

total earnings = base pay + Wednesday piecework + Friday piecework
= $40.00 + $52.60 + $68.15
= $160.75

Lian earned $160.75 doing mail outs on Wednesday and Friday.


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



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