If a company wants an employee to average about $14.00 per hour to produce 60 units per hour, plus it provides a base salary of $7.00 per hour, what should be the incentive rate per hour?
A) $0.117
B) $8.54
C) $0.333
D) $1.25

Question

Quizplus · Accepted Answer

The incentive rate per hour should be $0.117. This is because the company wants the employee to average about $14.00 per hour to produce 60 units per hour, plus it provides a base salary of $7.00 per hour. So, the incentive rate per hour should be $14.00 - $7.00 = $7.00. And, the incentive rate per unit should be $7.00 / 60 units = $0.117.

If a Company Wants an Employee to Average About $14