Question

If your base pay is $10,000, your commission rate is 40%, you sell 15 cars, and you earn $40,000, how much does each car cost?

Answer 1

$56,123

40% for 15 car.,

Answer 2

$5,000.

Explanation:

Let x represent cost of each car.

We have been given that your base pay is $10,000, your commission rate is 40%, you sell 15 cars, and you earn $40,000. We are asked to find the cost of each car.

The commission earned on each car would be
`(40)/(100)x=0.40x`.

The commission earned for selling 15 cars would be
`15*0.40x=6x`.

The total amount earned by you would be base salary plus amount earned in commission.

`6x+10,000=40,000`

`6x+10,000-10,000=40,000-10,000`

`6x=30,000`

`(6x)/(6)=(30,000)/(6)`

`x=5,000`

Therefore, the cost of each car is $5,000.