question archive Arah serves at a restaurant and makes 20% of what she sells as tips

Arah serves at a restaurant and makes 20% of what she sells as tips

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Arah serves at a restaurant and makes 20% of what she sells as tips. Her base wage is $10.20/hr. Each hour, she sells an average of $60 of food and drinks. She also makes time and a half when she works over 8 hours during a single shift. Her work week contains three 10-hour shifts, one 5-hour shift, and one 11-hour shift. Using the same income deductions as stated in the previous question, what is Sarah's annual gross income

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  • Base salary = $10.20 / hour.
  • Tips = 0.20 x 60 = $12 / hour
  • Total no of weeks in a year = 50

10?hour shifts in a year = 50 x 3 = 150

Earning in 10-hour = (8x10.20) + (2x10.20x1.5) = $112.20

5?hour shifts in a year = 50 x 1 = 50

Earning in 5-hour = (5x10.20) = $51

11?hour shift in a year = 50 x 1 = 50

Earning in 11-hour = (8x10.20) + (3x10.20x1.5) = $127.50

Annual Gross Income = (150 x 112.20) + (51 x 50 ) + (50 x 127.50) = $25,755

Annual Gross Income = $25,755

Tips earned = [(150x10)+(50x5)+(50x11)]x $12

Tips earned = $27600

Annual Net Income = Annual Gross Income + Tips earned

Annual Net Income = $25,755 + $27600 = $53.355

Annual Net Income = $53.355