Question

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?

Answer 1

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.