Question

Ted earns a salary of $900 a month and a commission of 10% on all sales over $5,000. This month his sales were $36,000. What were his total earnings for the month?

Answer 1

$4,000

Explanation:

He makes a flat rate of $900, plus 10% on sales over $5,000

He sold $36,000, so he gets paid on $36,000 - $5,000 = $31,000 of those sales.

10% of $31,000 is

$31,000(0.10) = $3,100

He made $900 + $3,100 = $4,000