Note: In this chapter and in all succeeding work throughout the course, unless instructed otherwise, calculate hourly rates and overtime rates as follows: 1. Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate). 2. If the third decimal place is 5 or more, round to the next higher cent. 3. If the third decimal place is less than 5 , simply drop the third decimal place. Examples: Monthly rate $1,827 Weekly rate ($1,82712)/52=$421.615 rounded to $421.62 Hourly rate $421.62/40=$10.540 rounded to $10.54 O.T. rate $10.541.5=$15.81 Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow. Example 2-25 Kate Kline receives an annual $35,000 base salary for working a certain territory. A sales quota of $800,000 has been set for that territory for the current year. Kline will receive a 6 percent commission on all sales in excess of $800,000. For the current year, the sales in the territory are $1,030,000. The bonus paid Kline would be: $13,800(6%of$230,000) Kline's total earnings for the year would be: $48,800($35,000+$13,800) \begin{tabular}{lcc} \multicolumn{1}{c}{ Item } & Gross Sales & CustomerReturns \\ Regular sweaters & $600 & $58 \\ Cashmere sweaters & 895 & 75 \\ Ties & 190 & 0 \\ Dress shirts & 445 & 39 \\ Sports shirts & 585 & 45 \end{tabular} c. Push money (PM): $3% d. Total weekly earnings