Question

An employee makes an hourly rate plus any tips they earn. This tip employee made a total of $400 by working 28 hours last week. If $253 of their total earnings was their tips, what is their hourly rate of pay? a. $5. 25 b. $5. 61 c. $8. 82 d. $9. 4.

Answer 1

Subtract the tips from total earned:

400-253 = 147

Now Divide by hours worked:

147/28 = 5.25

Hourly rate is $5.25