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18 July, 05:32

As a valet at the mall, Davis works 7-hour shifts. He earns $7 per hour and keeps 60% of his tip money. How much does Davis need to be tipped so that he takes home exactly $87.50, before taxes are deducted, per shift?

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  1. 18 July, 08:52
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    First lets calculate how much he makes in 7 hours from his hourly pay.

    Multiply 7 hours by $7, which equals $49, this is known as his base pay.

    Now we subtract his base pay from what he wants to earn,

    $87.50 - $49 = $38.50

    He needs to earn $38.50 in tips.

    He keeps 60% of his tip money, so we would divide the amount he needs ($38.50) by 0.60 (60% as a decimal) to find out how much he needs in tips.

    38.50 / 0.60 = 64.17

    He needs to earn $64.17 in tips
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