Question

Juan Ramirez sells suits in a major department store on weekends. He earns a commission of 5% on the first 10 suits he sells. If he sells more than 10, he earns another 3% on the additional suits. Last weekend Juan sold 13 suits priced at $250 each. What was his commission?

A. $185.00
B. $260.00
C. $147.50
D. $210.40

Answer 1

C. $147.50
the first 10 suits would sell at 250 each totaling 2500 which means he earns 5% of $2500, which is 0.05 x 2500 = $125. The next 3 suits which also sold at 250 which totals $750, he makes 3% of that amount which is 0.03 x 750 = $22.50. Together is makes 125 + 22.50 = $147.50 in commission.