Question

Simpson office furniture pays Tom Russell a $2490 monthly salary plus a 9% commission on merchandise he sells each month .assume Tom's sales were $88,000 for last month.Find the commission and gross pay for the month

Answer 1

Given:

Monthly pay = $2490

Commission on sales = 9%

Sales for last month = $88,000

Let's find the commission and gross pay for last month.

To find the commission, apply the formula:

Commission for last month = 9% of sales for last month

Thus, we have:

Commission for last month =

`\begin{gathered} (9)/(100)\ast88000 \\ \\ =0.09\ast88000 \\ \\ =7920 \end{gathered}`

Therefore, the commission for last month is $7,920.

To find the gross pay, apply the formula:

Gross pay = Monthly salary + Commission amount

Gross pay = $2490 + $7920 = $10,410

Therefore, the gross pay for the month is $10,410

ANSWER:

Commission = $7920

Gross pay = $10410