A worker is paid on a piece-rate basis of £0.80 per unit with a guaranteed minimum wage of £320 per week. The worker makes 360 units in one week. What is the pay?
Answer and explanation
Correct answer: D. £320
- Step 1: Piece-rate earnings = 360 × £0.80 = £288.
- Step 2: The guaranteed minimum is £320, which is higher.
- Step 3: The worker is paid the higher figure of £320.
Answer
£320.
Why not the others: £288: This pays piece-rate earnings only and ignores the guarantee. £608: This adds the guarantee and the piece-rate earnings together. £360: This pays £1 per unit instead of £0.80.
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