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 ($1,827 12)/52 = $421.615 rounded to $421.62 Hourly rate $421.62/40 = $10.540 rounded to $10.54 O.T. rate $10.54 1.5 = $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)

Wendy Epstein, a sales representative, earns an annual salary of $33,100 and receives a commission on that portion of her annual sales that exceeds $150,000. The commission is 7.5% on all sales up to $50,000 above the quota. Beyond that amount, she receives a commission of 9.0%. Her total sales for the past year were $275,000. Compute the following amounts:

a. The regular annual salary	$_______________
b. The commission	$_______________
c. The total annual earnings	$_______________