The employee's hourly rate of pay would be $5.25 if his total earning is $400 and the total tip is $253.
An employee is an individual who works for the employer and in return, he/she demands some wages or salary.
Computation of the hourly rate of pay:
Given,
Total Earning = $400,
Total Tips = $253,
Working Hours = 28 Hours.
Then, an hourly rate of pay:
[tex]\text{Hourly Rate of Pay}=\dfrac{ \text{Total Earnings} - \text{Total Tip}}{\text{Hours of Work}} \\\\\\\text{Hourly Rate of Pay}=\dfrac{(\$400-\$253)}{28}\\\\\\\text{Hourly Rate of Pay}=\$5.25.[/tex]
Therefore, option A is correct.
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