Option A: Bi-Weekly Pay Frequency

Option B: Semi-Monthly Pay Frequency

Student Team Work Area - Calculate Periodic Distributions Below

PART 1: Option A (Bi-Weekly) Divisor Period Constant: \(\text{Periods} = \_\_\_\_\_\)

Bi-Weekly Paycheck Value: $ ________________ / period

PART 2: Option B (Semi-Monthly) Divisor Period Constant: \(\text{Periods} = \_\_\_\_\_\)

Semi-Monthly Paycheck Value: $ ________________ / period

EVS CK12 SCHOOL DISTRICT • BUSINESS MATHEMATICS DEPT UNIT 1 REVIEW SERIES: GALLERY WALK

Audit Station 06

SALES COMMISSION

Core Focus: Commission vs. Guaranteed Minimum Base Pay Structures

CM-06

SYS.LOC: REVIEW_STATION_6

PROTECTIVE FLOOR

Guaranteed base structures ensure stable baseline pay during slow sales cycles. The operator formula is MAX(Commission, Base). This means they are paid the single highest value, never a cumulative sum of both!

Reference Ledger

DECISION LOGIC

\(\text{Comm} = \text{Sales} \times \text{Comm Rate}\)

\(\text{Base} = \text{Guaranteed Floor}\)

\(\text{Payout} = \text{MAX}(\text{Comm}, \text{Base})\)

Scenario Files: Stable Flight Logistics STATUS: ACTIVE AUDIT

Case Folder: Amelia • Freight Coordinator

Amelia operates under a protective minimum contract. She is promised a flat base salary of $950.00 / week, or an 8.5% commission on all closed freight volume, whichever is greater. This week, she successfully closed a total of $10,000.00 in freight sales volume.

Objective 1: Calculate Amelia's potential sales commission. Objective 2: Compare and determine final gross payout.

Student Team Work Area - Write Out Your Steps Below

PART 1: Potential Commission 1. Convert rate: \(8.5\% \div 100 = 0.085\) 2. Multiply: \(\$10,000.00 \times 0.085 = \_\_\_\_\_\)

Potential Sales Commission: $ ________________

PART 2: Comparative Payout 1. Compare: \(\text{Commission } (\_\_\_\_\_) \text{ vs Base } (\$950.00)\) 2. Evaluate: Which is greater?

Amelia's Final Weekly Gross Payout: $ ________________

EVS CK12 SCHOOL DISTRICT • BUSINESS MATHEMATICS DEPT UNIT 1 REVIEW SERIES: GALLERY WALK

Effective Rate: $ _________/hr

Shortfall? [ YES / NO ]

AUDIT STATION 05: DIVISOR DILEMMA (Salary & Pay Periods) ANNUAL COHESION

PART A: Option A (Bi-Weekly)

• Divisor period constant: _______

• Calculation Steps:

Bi-Weekly Pay: $ ______________/period

PART B: Option B (Semi-Monthly)

• Divisor period constant: _______

• Calculation Steps:

Semi-Monthly Pay: $ ______________/period

AUDIT STATION 06: SALES COMMISSION (Commission vs. Base) FORMULA: MAX(Commission, Base)

PART 1: Potential Commission

• Setup: Closed Volume ($10,000.00) × Rate (_______)

• Show multiplication step below:

Potential Commission: $ ______________

PART 2: Comparative Payout

• Guaranteed Weekly Base Floor: $950.00

• Comparison: \(MAX(\$ \_\_\_\_\_\_, \$950.00)\)

Amelia's Gross Payout: $ ______________

Audit Debrief & Assessment Review

Review Prompt: A common payroll misconception is that working more pay periods (e.g., weekly vs. monthly) generates higher overall annual earnings. Based on your work at Station 05, explain why this is incorrect. Use data from your calculations to prove your statement.

UNIT 1 COMPENSATION AUDIT • WORK-LOG SHEET PAGE 2 OF 2

Overtime & Rate Splits:

• Standard Hours (max 40): ___________ hrs

• Overtime Hours: ___________ hrs

• Premium Overtime Rate: $___________ / hr

Weekly Gross Earnings:

• Straight-Time Pay Setup: ____________________ = $_________

• Overtime Pay Setup: ____________________ = $_________

• Total Gross Pay: $_______________________

SECTION II: COMPENSATION APPLICATIONS (30 Points • 15 Points Each)

Scenario A (Piecework): Chloe operates an industrial stitching station. She gets paid a standard piece rate of $0.80 per garment finished. This week, she finished 610 garments and logged a total of 32 hours of shift work on her timesheet.

1. CALCULATE GROSS PAY:

$ _______________

2. EFFECTIVE HOURLY RATE:

$ _______________ / hr

3. FLSA COMPLIANT? (Min $12)

[ YES / NO ]

Scenario B (Commission vs. Base): Benjamin sells premium enterprise network routers on commission. He is guaranteed a flat weekly minimum safety-net salary of $1,100.00 OR an 7.5% sales commission on his total gross weekly sales, whichever is higher. This week, Benjamin closed a total of $16,000.00 in sales.

1. POTENTIAL COMMISSION:

$ _______________

2. COMPARATIVE FORMULA:

MAX(___________ , ___________)

3. FINAL WEEKLY GROSS PAY:

$ _______________

UNIT 1 EXAM • METHODS OF COMPENSATION PAGE 2 OF 2

Option A: Current Monthly (12)

• Divisor period constant: _______

Paycheck: $ _____________

Option B: Transition Bi-Weekly (26)

• Divisor period constant: _______

Paycheck: $ _____________

Auditor Note: Explain why Evelyn's overall annual compensation remains completely identical despite the change in pay periods. Use mathematical logic to support your argument:

PHASE 4: BUSINESS DEVELOPMENT (Commission vs. Base Pay) EMPLOYEE: SARAH, S.

Sarah, S. secures sponsorship accounts. Her contract guarantees a safety-net minimum salary of $850.00 / week OR an 8.0% commission on all closed sponsorships, whichever is GREATER. This week Sarah secured $12,000.00 in closed sponsorships.

1. Potential Sales Commission:

• Setup: Closed Volume × Rate

Commission: $ _____________

2. Comparative MAX Analysis:

• MAX(Commission vs. Base Guarantee)

Gross Payout: $ ______________

MASTER RECONCILIATION SUMMARY OFFICE OF THE CONTROLLER

Compile the final gross liabilities for the audited weekly payroll cycle below. Show the total cumulative weekly gross pay PixelCraft Studios owes to these four personnel pools.

By signing below, I certify that these accounts have been mathematically verified.

Auditor Signature: _________________________________________

PIXELCRAFT STUDIOS PAYROLL AUDIT PROJECT EXAM PAGE 2 OF 2

SECTION II: STANDARD WRITTEN EXAM KEY

Section I: MC Keys (30 pts)

1. B) $15.25/hr

4. B) Minimum wage

2. B) Rate x 1.50

5. B) 26 paychecks

3. C) 0.75 hours

6. C) MAX(Base, Comm)

Section II: Applications (30 pts)

Scenario A (Piecework):

• Gross Piecework: $488.00 \((610 \times \$0.80)\)

• Effective Rate: $15.25/hr \((\$488 \div 32)\)

• Compliant? YES \((15.25 \ge 12.00)\)

Scenario B (Commission vs Base):

• Potential Comm: $1,200.00 \((\$16,000 \times 0.075)\)

• Payout: $1,200.00 \((MAX(\$1,200, \$1,100))\)

Problem 1: Timesheet & Overtime Key (40 pts)

MON: 8.0 hrs

TUE: 8.75 hrs

WED: 9.0 hrs

THU: 8.25 hrs

• Total Weekly Hours: 34.0 hrs

• Since total weekly hours (34) are under standard 40, zero overtime applies!

• Straight Pay: $612.00

Setup: \(34.0 \text{ hrs} \times \$18.00\)

• Total Gross Pay: $612.00

SECTION III: SCENARIO PROJECT EXAM MASTER KEY

PHASE / PERSONNEL

VERIFIED STEPS

CALCULATED WORK

GROSS PAYOUT ($)

Jackson, J. (QA)

ST + Overtime Splits

\(40 \times \$24 + 8 \times (\$24 \times 1.5)\)

$1,248.00

Luis, L. (Art)

Piecework & Comp check

\(18 \text{ logos} \times \$45.00\)
\((\text{Eff. Rate: } \$13.50 \ge \$12.00)\)

$810.00

Evelyn, E. (Mgr)

Fixed Weekly Equiv

\(\$58,500.00 \div 52 \text{ weeks}\)

$1,125.00

Sarah, S. (Sales)

MAX Commission

\(MAX(\$12,000 \times 0.08, \$850)\)
\(MAX(\$960, \$850)\)

$960.00

Total Master Weekly Liability:

$4,143.00

TEACHER ANSWER KEYS • METHODS OF COMPENSATION PAGE 2 OF 2