Question

An employee does not earn sales commission for the first $1000 of sales, but earns 15% sales commission on all sales made thereafter. The employee's daily sales were as follows this week: Monday - $800, Tuesday - $600, Wednesday - $1,300, Thursday - $800, and Friday - $800. How much sales commission did the employee earn this week?

Answer 1

The employee earns a total sales commission of $285 this week, by adding the sales that are eligible for commission after the first $1000 and calculating 15% of that total.

Step-by-step explanation:

The question involves calculating the sales commission earned by an employee over a week. The commission earnings only start after the first $1000 in sales. We will assess each day's sales to determine when the employee begins earning commission and then calculate 15% of the sales beyond that threshold.

• 
  
• Monday: $800 (no commission as it's below $1000)
• 
  
• Tuesday: $600 (no commission as the cumulative sales are now $1400, but the first $1000 do not count)
• 
  
• Wednesday: $1300 (commission is earned only on $300, which is $1300 - $1000 threshold)
• 
  
• Thursday: $800 (full amount receives commission)
• 
  
• Friday: $800 (full amount receives commission)

To calculate the total commission, add up the total sales eligible for commission: $300 (Wednesday) + $800 (Thursday) + $800 (Friday) = $1900. Then, calculate 15% of $1900.

0.15 x $1900 = $285

Therefore, the employee earned a total sales commission of $285 this week.

Answer 2

Answer: $495

Step-by-step explanation:

From the given information in the question , we have

The total earning in the whole week will be :-

`\text{Total Earnings}=800+600+1,300+800+800=\$4,300`

Commission percentage = 15% = 0.15

Since he does not earn sales commission for the first $1000 of sales.

Then the total sales commission he earned in the whole week will be :-

`0.15(\$4300-\$1000)=\$495`

Hence, the employee earn the $495 sales commission this week