Question

. A new employee at an auto detailing shop is offered one of three options for earning pay: Option 1: Receive an hourly rate of $15.25 for 8 hours plus $0.50 per bottle of wax sold to customers. Option 2: Receive $38.75 per automobile detailed in a day. Option 3: Receive $100 per day plus 2% of sales in a day. A typical day consists of 12 bottles of wax sold per detailer, 4 automobiles detailed per employee, and average daily sales are $1,500. Which option should the new employee choose in order to make the most money on an typical day, and how much will he earn in a 20-day month at this rate?

Answer 1

The new employee should choose the second option to make the most money on a typical day. The amount that the new employee will earn 20-day at this rate is $3,100.

What is multiplication?

Multiplication is the process of multiplying, therefore, adding a number to itself for the number of times stated. For example, 3 × 4 means 3 is added to itself 4 times, and vice versa for the other number.

For Option 1,

Receive an hourly rate of $15.25 for 8 hours plus $0.50 per bottle of wax sold to customers. Also, A typical day consists of 12 bottles of wax sold per detailer.

Earning = ($15.25 × 8) + ($0.50×12)

= $122 + $6

= $128

For Option 2,

Receive $38.75 per automobile detailed in a day. Also, 4 automobiles are detailed per employee. Therefore, the earnings are,

Earning = $38.75 × 4

= $155

For Option 3,

Receive $100 per day plus 2% of sales in a day. Also, the average daily sales are $1,500. Therefore, the earnings are,

Earning = $100 + 0.02($1500)

= $130

Hence, The new employee should choose the second option to make the most money on a typical day.

2.)

The amount that the new employee will earn 20-day at this rate is,

Amount earned = $155 × 20 days

                           = $3,100

Hence, The amount that the new employee will earn 20-day at this rate is $3,100.

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