The salesperson's total income is calculated by adding their annual salary of $40,000 to their commission of $8,400, which is 7% of $120,000 in sales, resulting in a total income of $48,400.
Step-by-step explanation:
The salesperson earns a salary of $40,000 per year. In addition, they receive a 7% commission on sales of $120,000. To calculate the total income, we first find the commission using the given percentage of sales:
Commission = 7% of $120,000 = 0.07 × $120,000 = $8,400.
Next, we add the commission to the annual salary to find the total income:
Total income = Salary + Commission = $40,000 + $8,400 = $48,400.