Andre Works for a Bakery as a Cake Decorator and Receives

question 57

Multiple Choice

Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates. His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date
Of the following month. During the month of June, he decorated eight wedding cakes with a total retail value of $2,650. What is Andre's gross
Pay for the first week in July? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

• A) $1,239.42
• B) $1,526.78
• C) $1,427.53
• D) $1,485.96

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Definitions:

Common Fixed Expenses

Common fixed expenses are overhead costs shared across multiple segments or products of a business, like administrative salaries or building rent.

Break-Even

The point at which total costs and total revenue are equal, meaning there is no net loss or gain.

Sales Dollars

The total revenue generated from selling goods or services, measured in dollars.

Common Fixed Expenses

Expenses that do not change with the volume of production or sales and are shared among different segments or products of a business.