Under a Modified Wage Plan, Jim Phillips Works an Eight-Hour

Multiple Choice

Under a modified wage plan, Jim Phillips works an eight-hour day and earns $.50 for each finished unit he produces in excess of 200 units. However, he is guaranteed $12.50 per hour as a minimum wage. His production this week was a follows: How much was the make-up guarantee paid to Jim this week?

A) $10
B) $5
C) $15
D) $12.50