Question

Casey sells computer equipment. He is paid a base salary of $2200 per month and a commission of 2% of all sales over $7500. If Casey sells $12,350 worth of computer equipment this month, calculate his gross pay for the month.

Answer 1

First figure his commission...remove the $7500 of sales that he DOESN’T earn commission on, so $12,350-7,500=$4,850 that he DOES earn a commission on. So his commission this month is $4850 x .02 = $97.00. Add that $97 to his base salary of $2200...so his gross pay for the month is $2,297