Andre Is Works for a Bakery as a Cake Decorator

question 60

Multiple Choice

Andre is 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 final answer to 2 decimal places. )

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

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Compound Annual

This term, when incomplete, typically refers to the compound annual growth rate (CAGR), which is a measure of the mean annual growth rate of an investment over a specified time period longer than one year.

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan on a quarterly basis, thus increasing the amount on which subsequent interest is calculated.

Semiannually Compounded

Interest calculation method where the interest earned is added to the principal twice per year, effectively growing the investment more quickly than simple interest.