Question

Jim Tree receives a salary of $120.00 per week plus commission of 1% on sales to $3,000 and 2% on amounts over $3,000. Jim averages $9,650.00 dollars in sales per week. His expected total earnings for one week would be _____.

A) $210.00
B) $216.50
C) $283.00
D) $313.00

Answer 1

C) $283.00

Explanation:

His expected total earnings in one week are the sum of the salary and the two commissions.

salary: $120

commission at 1%: 1% * $3,000 = 0.01 * $3,000 = $30

commission at 2%:

The commission at 2% applies to the amount of sales in excess of $3,000.

$9,650 - $3,000 = $6,650

The 2% commission applies to $6,650.

commission at 2%: 2% * $6,650 = 0.02 * $6,650 = $133

Total earnings: $120 + $30 + $133 = $283

Answer: $283