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?
To find the answer we must remove the tips amount from the total amount, and then divide what remains by the numbers of hours he worked. So we have: HourlyRate = (400 - 253) / 28 <=> HourlyRate = 147/28 <=> HourlyRate = $5.25
