Question

Edison has a sales job and receives $45,448 as his annual pay plus commission his company pays him commission of 15% on this total sales if he makes sales of $25000 in the first 3 months how much will he be paid for those 3 months

Answer 1

Edison will be paid $15,112 for the first three months.

Explanation:

We know that Edison receives an annual fixed pay of $45,448. Therefore, his fixed pay for each month will be
`(45448)/(12)=\$3787.33`

Therefore, his fixed pay for the 3 months will be
`3787.33*3=\$11362`.

Now let us compute the commission that Edison received. For that we will compute the 15% of the total sales for those 3 months. Total sales for the 3 months is $25000. Therefore, his commission would be
`0.15*25000=\$3750`

Therefore, total pay that Edison received during first 3 months would be:

`11362+3750=\$15,112`