Question

An insurance company has hired a sales representative, and has agreed to pay him a fixed salary of $2,000 per month, along with a commission of 2% on every sale made by him in a month. For the month of March, 20X1, the sales representative made a total sales of $15,000. Calculate the cost of the sales representative for the month.

Answer 1

$2300

Explanation:

The commission earned by the representative is ...

commission = 0.02 × $15,000 = $300

so the total to be paid to the sales representative is ...

salary + commission

= $2000 +300 = $2300