UNIT 1: MAKING MONEY
Key concepts in consumer math related to making money, including gross vs. net income, hourly vs. salary vs. commission pay, and overtime calculations. Dive into different pay structures and learn how to calculate earnings based on various scenarios.
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UNIT 1: MAKING MONEY CONSUMER MATH
GROSS INCOME VERSUS NET INCOME WHAT IS THE DIFFERENCE? GROSS- WHAT YOU MAKE BEFORE TAXES ARE TAKEN OUT NET- THE AMOUNT THAT IS DEPOSITED IN YOUR BANK ACCOUNT (AFTER TAXES ARE TAKEN OUT) WE WILL DO MORE CALCULATIONS WITH THESE LATER!
HOURLY VERSUS SALARY VERSUS COMMISSION WHAT IS THE DIFFERENCE? HOURLY- PAID BY THE HOUR SALARY- YOU MAKE A SPECIFIED AMOUNT NO MATTER THE NUMBER OF HOURS YOU WORK COMMISSION- YOUR PAY IS DIRECTLY RELATED TO JOB PERFORMANCE (SALES)
OVERTIME OVERTIME- MUST BE PAID WHEN YOU WORK OVER 40 HOURS IN A PAY PERIOD (WEEK) PAY DEPENDS ON THE COMPANY BUT IT IS USUALLY TIME AND A HALF EX: IF YOU ARE PAID $10 AN HOUR, THEN OVERTIME PAY WOULD BE $15 PER HOUR ONLY PAID OVERTIME FOR THE NUMBER OF HOURS WORKED OVER 40 HOURS.
OVERTIME- CALCULATION PRACTICE I WORKED 52 HOURS IN THE PAST WEEK. IF I GET PAID $12 PER HOUR, AND GET PAID TIME-AND-A- HALF FOR OVERTIME, CALCULATE THE TOTAL AMOUNT I WOULD GET PAID BEFORE TAXES.
HOURLY PAY RESEARCH 5 DIFFERENT CAREERS WHICH PAY AN HOURLY WAGE. GIVE THE HOURLY PAY RANGE CALCULATE THE YEARLY GROSS INCOME- ASSUMING 40 HOURS PER WEEK FOR 52 WEEKS
SALARY PAY PAID THE SAME AMOUNT EACH MONTH, NO MATTER HOW MANY HOURS YOU WORK. IF I WORKED 50 HOURS PER WEEK WOULD I GET ANY OVERTIME?
SALARY PAY RESEARCH 5 DIFFERENT CAREERS WHICH PAY IN A SALARY. GIVE THE SALARY RANGES DETERMINE THE HOURLY RATE (ASSUMING YOU WORK 40 HOURS A WEEK FOR 52 WEEKS)
COMMISSION PAY 2 MAJOR TYPES: STRAIGHT COMMISSION BASE SALARY PLUS COMMISSIONS
STRAIGHT COMMISSION PAID BASED DIRECTLY OFF HOW MUCH OF A PRODUCT(S) YOU SELL. PAID ONCE A MONTH USUALLY OFTEN RISKY IF YOU DON T SELL MUCH YOU ARE NOT GOING TO MAKE THAT MUCH FOR THE MONTH FOUND IN MANY RETAIL CLOTHING, COSMETICS, OFFICE PRODUCTS AND REAL ESTATE BUSINESSES
STRAIGHT COMMISSION AVERAGE COMMISSION RATES: CELLULAR STORES: $25 PER LINE ACTIVATION, 10% ON ACCESSORY SALES BEAUTY RETAIL (MAKE-UP, HANDBAGS, ETC.): 3-5% DEPARTMENT RETAIL (SHOES, APPLIANCES, ELECTRONICS): 8-10% FURNITURE: 2-6% REAL-ESTATE: 2.5-3% CAR SALES: 30% OF THE FRONT END PRICE (DIFFERENCE BETWEEN SELLING PRICE AND DEALER PRICE)
BASE SALARY PLUS COMMISSIONS SALESPERSON HAS A BASE SALARY PLUS THEY HAVE AN ADDITIONAL PERFORMANCE-BASED COMMISSION STRUCTURE. FOUND IN MANY LARGER BUSINESSES WHERE PEOPLE HAVE TO TRAVEL FOR SALES EXAMPLE: SPORTSWEAR MANUFACTURER, TECHNOLOGY COMPANY, ETC. USUALLY WORKS WELL FOR CAREERS WITH LONG-TERM RELATIONSHIP BUILDING AND FOR POSITIONS WITH ACCUMULATED EXPERTISE
COMMISSION PAY DRAWING AGAINST COMMISSION RECEIVING AN ADVANCE AGAINST A FUTURE COMMISSION USED WHEN SALESPERSON NEEDS MONEY NOW BUT WILL NOT GET PAID FOR A WHILE (IF THEY HAVE A BIG CLIENT IN THE NEXT PAY PERIOD)
COMMISSION PAY ASSUME YOU ARE GETTING PAID STRAIGHT COMMISSION. YOU SELL $15,450 WORTH OF MERCHANDISE FOR A GIVEN PAY PERIOD, AND YOU MAKE 6% COMMISSION OFF THE TOTAL SALES. WHAT IS YOUR PAYCHECK BEFORE TAXES FOR THE GIVEN PAY PERIOD?
COMMISSION PAY ASSUME YOU ARE GETTING PAID STRAIGHT COMMISSION. YOU SELL A CAR FOR $13,995. IF THE DEALERSHIP PRICE OF THE CAR WAS $10,999 AND YOU EARN 30% COMMISSION OFF THE FRONT END PRICE, WHAT IS YOUR PORTION BEFORE TAXES?
COMMISSION PAY RESEARCH 5 DIFFERENT CAREERS WHICH PAY BASED ON COMMISSION. WHAT IS THE AVERAGE COMMISSION FOR THOSE CAREERS?
TYPES OF PAY WORKSHEET COMPLETE THE WORKSHEET GIVEN TO YOU. WE WILL CORRECT IT DURING CLASS.
PROS AND CONS CREATE A LIST OF AT LEAST 5 PRO S AND AT LEAST 5 CON S FOR EACH OF THE THREE TYPES OF PAY.
YES, THE GOVERNMENT WANTS ITS CUT! FEDERAL WITHHOLDING- VARY BY YEARLY INCOME STATE WITHHOLDING- VARY BY YEARLY INCOME SOCIAL SECURITY TAXES 6.2% MEDICARE TAXES- 1.45%
TAX CALCULATIONS ASSUME YOU MAKE $36, 000 GROSS PER YEAR. CALCULATE NET INCOME FOR THE YEAR (INCOME AFTER TAXES).
TAX CALCULATIONS ASSUME YOU MAKE $29.95 PER HOUR. CALCULATE GROSS INCOME FOR THE YEAR. CALCULATE NET INCOME FOR THE YEAR (INCOME AFTER TAXES).
VOLUNTARY WITHHOLDING INSURANCE (LIFE, HEALTH, ACCIDENT, DISABILITY, ETC.) RETIREMENT PLANS FLEX- SPENDING ACCOUNTS- (HEALTH CARE) UNION DUES WHY WOULD YOU HAVE ANYTHING WITHHELD FROM YOUR CHECK?
DEDUCTIONS WORKSHEET CALCULATE THE DEDUCTIONS TAKEN OUT OF EACH QUESTION ON THE WORKSHEET YOU COMPLETED BEFORE.
