Question

Jean Gray earns a graduated commission of 4% on her first $2000 of sales and 8% on all sales over $2000. Jeans sales for the past week totaled $3,925. What was her commission for the week?

Answer 1

Jean Gray's total earnings over the past week was $3,925

Since Jean earns 4% for the first $2,00 business she does, she earns a base commission of = $2,000*0.04 = $80

Now, we need to find how of additional sales did Jean do over and above the base of $2,000. This is calculated as follows:

Total Sales = 3,925

Base sales =2,000

Add-on sales = 3,925-2,000 = 1,925

For the $1,925 sales, Jeans earns 8% commission, her commission for this will be 1,925*0.08 = $154

So, the total commission = $80 + $154 = $234

Her commission for the week was $234