Question

A car dealership pays you 4% commission on your first $8,000 in car sales and 8% commission on additional sales over the $8,000. If you made $9,000 in car sales, how much is your commission?

Answer 1

The commission is $400.

Explanation:

A car dealership pays you 4% commission on your first $8,000 in car sales.

The commission becomes:

`0.04*8000=320` dollars

Also given is that 8% commission is on additional sales over the $8,000. If you made $9,000, this means you made $1,000 over $8,000.

So, it will be 8% on $1000.

This value becomes:

`0.08*1000=80` dollars.

So, total commission on sales of $9000 is =
`320+80=400` dollars.

Therefore, the answer is $400.

Answer 2

Total Commission = $400

Explanation:

Since total is $9000 (in sales) -- commision is 4% on the first $8000 and 8% in the additional part over $8000 (9000-8000=1000). So 8% on $1000.

Total commission = 4% of 8000 + 8% of 1000

= (0.04)(8000) + (0.08)(1000)

= 400

Total Commission is $400