Sunshine Salon and Spa You are the owner/book keeper of the Sunshine Salon and Spa. There are 10 employees. The hourly employees are: Receptionist (1) Hair Washers (2) The hourly employees are paid minimum wage. Minimum wage is lowest hourly, wage that employers may legally pay to employees or workers. Equivalently, it is the lowest wage at which workers may sell their labor. The minimum wage in Ontario as of March 31, 2010 is $10.25/hour. Commission: money earned for selling a product or service, based on a percent of the value of the items sold or the number of items sold where the percent changes The commission employees are paid 40% of the first $1000 they bring in per week and 5% more for each additional $1000. The commission employees are: Stylists (5) Esthetician (2) You pay your employees bi-weekly.
Assignment 1: Counting Hours Complete the following charts for each employee to determine the number of hours worked. 1. Receptionist Employee Week Ending Name Ami Smith Day Time In Time Out # of Hours Break Time Monday on Card Tuesday 9:00 5:00 1 hour Wednesday 10:30 7:00 1 hour Thursday 10:00 5:00 1 hour Friday 9:00 6:00 1 hour Saturday 9:00 2:00 30 minutes Monday Tuesday 9:00 5:30 1 hour Wednesday 10:00 4:00 1 hour Thursday 9:00 6:00 1 hour Friday 9:00 6:00 1 hour Saturday 8:00 2:00 1 hour Total Hours Worked Day off Total Hours Worked (Week 1) Day off Total Hours Worked (Week 2) - 2 -
2. Hair Washer Employee Week Ending Name Joe Raposo Day Time In Time Out # of Hours Break Time Total Hours Worked on Card Monday 10:00 3:00 30 minutes Tuesday 9:00 5:00 1 hour Wednesday Day off Thursday 10:00 5:00 1 hour Friday 10:00 7:00 1 hour Saturday 8:00 3:00 30 minutes Total Hours Worked (Week 1) Monday 10: 30 3:00 30 min Tuesday 9:30 3:30 1 hour Wednesday Day off Thursday 9:00 4:00 1 hour Friday 10:00 7:00 1 hour Saturday 8:00 3:00 1 hour Total Hours Worked (Week 2) 3. Sally Dunbar (the other hair washer), has the same schedule each week. She works 5 hours on Wednesdays, 8 hours on Thursdays, 9 hours on Fridays, 8 hours on Saturdays. How many hours does she work each week? - 3 -
Assignment 2: Hourly Employees Complete the following chart to determine how much each hourly employee will receive. Week #1 Name Hours Worked Regular Hourly Rate Receptionist $10.25 (Ami Smith ) Weekly Earnings Hair Washer #1 (Sally) $10.25 Hair Washer #2 (Joe) $10.25 Week # 2 Name Hours Worked Regular Hourly Rate Receptionist $10.25 (Ami Smith ) Weekly Earnings Hair Washer #1 (Sally) $10.25 Hair Washer #2 (Joe) $10.25 Bi-Weekly Pay Name Gross Pay ( Week 1 + Week 2) Ami Smith Sally Joe - 4 -
Assignment # 3: Pay Stubs Complete a pay Stub for each of the 3 hourly employees that work at Sunshine Salon and Spa. 1. Name: _Ami Smith EARNING STATEMENT Statement of Earnings Employee Deductions Type Hours Rate Amount Type Deductions Regular Pay CPP EI Fed Tax $12.01 $11.42 $14.51 SUMMARY Gross Pay Deductions Net Pay 2. Name: Sally Dunbar EARNING STATEMENT Statement of Earnings Employee Deductions Type Hours Rate Amount Type Deductions Regular Pay CPP EI Fed Tax $9.01 $8.42 $12.51 SUMMARY Gross Pay Deductions Net Pay - 5 -
3. Name : Joe Raposo EARNING STATEMENT Statement of Earnings Employee Deductions Type Hours Rate Amount Type Deductions Regular Pay CPP EI Fed Tax $10.01 $9.42 $13.51 SUMMARY Gross Pay Deductions Net Pay - 6 -
Assignment # 4: Commission Employees Complete the following chart to determine how much each commission employee will receive. Recall: The commission employees are paid 40% of the first $1000 they bring in per week and 5% more for each additional $1000. Week #1 Name Stylist #1 (Janet) Amount of Sales Percent Commission (first $1000) Sales After first $1000 $ 3900 40% $3900 - $1000 = $2900 Percent Commission (over $1000) 40% + 2 x 5% = 50% Weekly Earnings ($1000 x 40%) + ($2900 x 50%) = $1850.00 Stylist # 2 (Maria) $ 3000 40% Stylist # 3 (Annette) $ 2900 40% Stylist # 4 (Andrew) $ 5030 40% Stylist # 5 (Mark) $ 3500 40% Esthetician # 1 (Lilly) $ 3500 40% Esthetician #2 (Anna) $ 3800 40% - 7 -
Week #2 Name Stylist #1 (Janet) Amount of Sales $2800 40% Percent Commission (first $1000) Sales After first $1000 Percent Commission (over $1000) Weekly Earnings Stylist # 2 (Maria) $1500 40% Stylist # 3 (Annette) $3500 40% Stylist # 4 (Andrew) $5432 40% Stylist # 5 (Mark) $3589 40% Esthetician # 1 (Lilly) $ 3581 40% Esthetician #2 (Anna) $2980 40% Bi-Weekly Pay Janet Name Gross Pay ( Week 1 + Week 2) Maria Annette Andrew Mark Lilly Anna - 8 -
Name: Ways to be Paid Summative Quiz 1. Lisa s monthly pay chart is shown below. Complete the Earnings column. Week Hours Worked Hourly Rate Earnings 1 19 $10.75 2 21 $10.75 3 25 $10.75 4 16 $10.75 2. What were Lisa s total monthly earnings? 3. What would Lisa s yearly earnings be? (Hint: There are 12 months in a year.) 4. Calculate the commission earned. Then, find the total commission earned by the salespeople in the chart. Name Sales Rate Commission Bob $500 8% Joan $12 000 9% Bill $4 500 1.5% Anne $750 3% Joe $125 000 12% Total Commission - 9 -
Assignment # 5: SALARY Another way that employers can choose to pay their employees is by salary. This means that the employee makes a certain amount of money annually (each year). You (as the owner / book keeper) pay yourself a salary of $40 000. 1. How much is your monthly salary? 2. How much is your weekly salary? 3. How much is your bi-weekly salary? 4. Calculate the total (bi-weekly) payroll expenses for the Sunshine Salon and Spa. - 10 -
Assignment # 6: Wages and Tips This is the price list of the Salon. Answer the questions below based on the information below. Sunshine Salon and Spa Price List Haircuts Designer Cuts for Women $40 Men s Cut $25 Children s cut $15 Formal updos $45 Hair color Services Virgin application, (single-process) $40 Color retouch $35 Double-process $55 Highlighting (full head) $75 Highlighting (partial head) $60 Texture Services Customized perm $80 Spiral perm $100 Esthetic Services Manicure $22 Pedicure $28 **French polish add $5** Eyebrow Wax $12 Lip Wax $7 Bikini $12 Half Leg $23 Full Leg $38 Underarm $12 Makeup Application $20 Brow Tint $17 Lash Tint $17 Brow/Lash Tint Combo $25-11 -
1. Michelle came in to the salon and had a hair cut and customized perm, a) what would be the cost of her service? b) what would be the cost of her service with 13% HST added on? b) what would she tip her stylist based on 15% of the sale? 2. Andrew is currently working for Sunshine Salon and Spa. There he receives 40% commission on sales of the first $1000 he brings in per week and 5% more for each additional $1000, he averages $5000 worth of sales. He received a job offer from Howl at the Moon salon. At this salon, he would receive a base salary of $500.00 per week plus 10% of sales. Which salon would you advise Andrew to work at? Why? 3. Howl at the Moon Salon is hiring stylists and estheticians. At this salon, customers tip 10-15% of the cost of the service. Based on the above information, answer the following questions about this salon and spa and its employees. a) If Lucy made a 10% tip on $100, how much is her tip? b) If the salon and spa did $1000 worth of sales each hour for eight hours, how much would Lucy make with a 10% tip? c) If Lucy makes 15% of $5330 in tips, and Thomas makes 10% of $8000 in tips, who makes better tips? - 12 -
Assignment # 7: Determining Costs of Items According to Forbes.com, salons should aim to make 20% of their revenue from product sales. You just returned from a beautician s supply store with the latest products, you need to determine the price you will charge your customers. Complete the chart below to determine the cost of each item to the customer. Item Description Cost to You Mark Up Mark Up Cost Total Cost to Customer Nighttime Restorative Cream $12.99 110% $12.99 x 110% = $14.29 $12.99 + $14.29 = $27.28 Balancing Toner $7.99 90% Lip Line Correcting Treatment $8.99 85% Nail Lacquer $1.99 120% Strong adhesion Base Coat $5.99 75% Shea Butter Lip Balm $1.99 110% Mint Lip Shine in a Juicy Tube Length and Wavy Clip (In Hair Extension) Quick 2 Shag Hair Piece GVP Ceramic Flat Iron $3.99 90% $39.99 150% $26.99 110% $69.99 125% - 13 -
Assignment # 8: Paying for Services at Sunshine Salon and Spa One of your duties as the owner is to handle most of the money transactions in the salon. You have to determine how much each customer owes, the amount of tax, and if they need any change. Refer to the price list from assignment #6 and assignment # 7 to help you complete the chart. Customer Description of Service Karla Bob Jenny Lizzy Shannon Hair Cut Eyebrow Wax Brow Tint Nighttime Restorative Cream Cut Colour Retouch (to cover the gray) Shea Butter Lip Balm Updo Manicure Pedicure Makeup Application Nail Lacquer Spiral Perm Bikini Wax Underarm Wax Balancing Toner Highlighting (full head) Brow Lash Tint Combo Balancing Toner Price (before tax) $40 + $12 + $17 + $27.28 = $96.28 Dollar Amount of HST (13%) $96.28 x 13% = $12.52 After Tax Cost $96.28 + $12.52 = $108.80 Amount Paid Change Given $110.00 $1.20 $75.00 $135.00 $160.27 $130.25-14 -
Summative Quiz Mark Up and Making Change Name: 1. Complete the chart below. Item Description Cost to You Mark Up Mark Up Cost Total Cost to Customer a) Time Correcting Cream b) Multi-Benefit Eye Cream $12.99 110% $12.99 90% c) Pool Side collection 6 Piece Display $5.99 85% 2. Complete the chart below. Customer Description of Service Sam Lorna Hair Cut Eyebrow Wax Brow Tint Nighttime Restorative Cream Perm Cut & Style Price (before tax) Dollar Amount of HST (13%) After Tax Cost Amount Paid $98.12 $120.00 $59.00 $100.00 Change Given 3. Jake s visit to the salon cost $37.89, he has the following denominations in his wallet: 2 twenty dollar bills 1 five dollar bill 2- toonies 1 looney 3 quarters 5 pennies What amount should he give to minimize the amount of coins he receives as change? - 15 -
Assignment # 9: Making a Major Purchase You would like to buy a tanning bed for the salon. This is a good way to generate more revenue for the salon. The tanning bed package costs $8600.00. 1. Determine the after-tax cost of the tanning bed. 2. One purchasing option is to use the layaway plan. You would give 10% down and pay the remainder on pickup in up to 6 months (once you have saved enough money). Determine the amount that you would pay upon pickup in 6 months. 3. The second option is the Rent-to-Own option. It is a monthly fee of $685.33, with a maximum rental period of 24 months. Determine the amount that she would pay at the end of the rental period. 4. The last option available to you is an Installment Plan. There is a deferral charge of $45 plus you must pay the taxes at the time of purchase, and then 20 monthly payments of $500. Determine the total amount that you would pay under this plan. - 16 -
5. How much more than the cash price would you pay under each option? (Do this for each one in 2-4.) Layaway Plan Rent-To-Own Installment Plan 6. Which option should you choose and why? Give at least 1 reason and provide justification. - 17 -