Under a modified wage plan, an employee working an eight-hour day earns $.40 for each finished unit and is guaranteed $20 per hour as a minimum wage. At what level should the daily quota be set?
A)160 units
B)400 units
C)500 units
D)640 units

Question

Quizplus · Accepted Answer

Daily wage = $20 x 8 hours = $160.
Units made in a day to reach $160 at a rate of $.40 = $160 / $.40 = 400 units

Under a Modified Wage Plan, an Employee Working an Eight-Hour