Question

Some jobs pay a commission plus a bonus at the end of the year. The bonus may be the percent

of the salesperson's total commission. Madelyn Carr is a sales representative for a luxury home
builder. She receives 7% commission on all sales. At the end of the year, she receives a bonus of
5% of her commission, (a) What is her gross pay for a year in which she had sales totaling
6412,454? (b) What would be Madelyn's gross pay be if her sales were $316,250?

Answer 1

Madelyn's gross pay for sales totaling $6,412,454 is $47,131.537, and for sales of $316,250, her gross pay would be $23,244.375.

Step-by-step explanation:

To find Madelyn Carr's gross pay for the year for the luxury home builder, we must first calculate her commission on the total sales and then determine her bonus, which is a percentage of that commission.

Part (a)

For sales totaling $641,2454, Madelyn's commission is 7% of that amount.

Commission = 0.07 * $641,2454 = $44,887.178

Bonus = 5% of her commission = 0.05 * $44,887.178 = $2,244.359

Gross pay = Commission + Bonus = $44,887.178 + $2,244.359 = $47,131.537

Part (b)

For sales totaling $316,250, Madelyn's commission and bonus are calculated similarly:

• Commission = 0.07 * $316,250 = $22,137.50
• Bonus = 0.05 * $22,137.50 = $1,106.875
• Gross pay = Commission + Bonus = $22,137.50 + $1,106.875 = $23,244.375

Answer 2

a) If Sales = $6412454, then Gross Pay = $471315.369.

If Sales = $412454, then Gross Pay = $30315.369.

b) If Sales = $316250, then Gross Pay = $23244.375.

Step-by-step explanation:

This is a simple question. Madelyn earns a commission plus a bonus from her job. The commission is 7% of sales and the bonus is 5% of the commission. Therefore:

a) If her sales are $6412454, then her gross pay will include:

Gross Pay = $6412454 * 7% + ($6412454 * 7%) * 5%.

Gross Pay = $448871.78 + $22443.589 .

Gross Pay = $471315.369.

I assume there is a typo in the question, so just in case, I will also calculate the gross pay for her sales equaling $412454.

Gross Pay = $412454 * 7% + ($412454 * 7%) * 5%.

Gross Pay = $28871.78 + $1443.589 .

Gross Pay = $30315.369.

b) If her sales are $316250, then her gross pay will include:

Gross Pay = $316250 * 7% + ($316250 * 7%) * 5%.

Gross Pay = $22137.5 + $1106.875 .

Gross Pay = $23244.375.

To summarize:

If Sales = $6412454, then Gross Pay = $471315.369!!!

If Sales = $412454, then Gross Pay = $30315.369!!!

If Sales = $316250, then Gross Pay = $23244.375!!!