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| Math Central | Quandaries & Queries |
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Question from Herschel: Fire Fighting Equipment pays salespeople as follows: $452 per week plus a commission of .9% on sales between $15,000 and $25000, with 1.1% paid on sales in excess of $25,000. Find the gross earnings for an salesperson whose Total Sales are $28,400. (No commission is paid on the first $15,000 of sales) |
Hi,
The sales peoples' weekly gross earnings comes in three categories.
- A base salary of $\$452.$
- A commission of 0.9% on sales between $\$15,000$ and $\$25,000.$
- A commission of 1.1% on sales over $\$25,000.$
This salesperson had total sales of $\$28,400$ which is more than $\$25,000$ so will receive payment in each of the 3 categories. The gross earnings will be the sum of the following.
- $\$452.$
- The amount of sales between $\$15,000$ and $\$25,000$ is $\$10,000$ hence the commission in this category is 0.9% of $\$10,000.$
- $\$28,400 - \$25,000 = \$3,400$ and hence the commission in this category is 1.1% of $\$3,400.$
I hope this helps,
Penny
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