A gourmet food company has received a large order for deluxe gift baskets from a corporate client. All baskets will have the same food content and will be delivered in a box with the logo of the corporate client. The company will have to hire temporary workers to assemble the gift baskets. The standard is for a worker to produce is 40 baskets per shift. Workers are compensated $1 per basket and earn an additional 10% per basket beyond the standard output. How much would a worker producing 60 baskets in a shift earn?

Rationale

$62

To calculate the earnings for a worker producing 60 baskets in a shift, we first consider the standard output of 40 baskets. The worker earns $1 per basket for the first 40 baskets, totaling $40. For the additional 20 baskets produced beyond the standard, the worker earns an extra 10% per basket, which is $0.10 per basket, making it $1.10 per basket for those additional baskets. Hence, the total earnings are $40 for the first 40 baskets plus $22 for the additional 20 baskets, resulting in $62.

A ($62) CORRECT

This choice accurately reflects the calculation of earnings based on the production of 60 baskets. The worker earns $40 for the first 40 baskets and $22 for the extra 20 baskets, totaling $62.

B ($40) YOUR ANSWER

This amount represents only the earnings for the standard output of 40 baskets. It does not account for the additional earnings from producing 20 baskets beyond the standard, which would be incorrect.

C ($80) YOUR ANSWER

This option incorrectly assumes that the worker earns $1 per basket for all 60 baskets without considering the standard output limit. The calculation overlooks the additional earnings structure for exceeding the standard output.

D ($38) YOUR ANSWER

This choice is significantly lower than the actual calculated earnings. It likely results from a misunderstanding of how the additional earnings are computed, failing to recognize that the worker earns more than just $1 per basket for those exceeding the standard.

Conclusion

In conclusion, the correct calculation for a worker producing 60 baskets, factoring in the standard output and additional earnings, results in a total of $62. Understanding the compensation structure is key to accurately determining earnings, as it distinguishes between standard and excess productivity.

$62

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