Question

Cara earns a base pay of $1,800 per month at a car dealership plus a commission of 6% of her sales. What are Cara’s total earnings in a month in which she sells $40,000 worth of merchandise.

Answer 1

Cara’s total earnings in a month in which she sells $40,000 worth of merchandise is $ 4200

Solution:

Given that Cara earns a base pay of $1,800 per month at a car dealership plus a commission of 6% of her sales

Let us first calculate commission earned from selling $40,000 worth of merchandise

commission earned from selling $40,000 = 6 % of $ 40,000

`\text {commission earned from selling } \$ 40,000=(6)/(100) * 40,000`

`\text {commission earned from selling } \$ 40,000=2400`

Also given that Cara earns a base pay of $ 1800 per month

So Cara’s total earnings in a month in which she sells $40,000 worth of merchandise is calculated by adding commission earned $ 2400 to base pay $ 1800 per month

Cara’s total earnings in a month = base pay + commission earned

Cara’s total earnings in a month = $ 1800 + $ 2400 = $ 4200

Thus the total earning of Cara in that month is $ 4200