Question

Edgar Anderson earns $300 per week plus 15% commission on all sales over 1,000. if Mr. Anderson's sales for one week are 2,500 what are his gross pay for the week?

a) 525
b) 775
c) 450
d) 675

Answer 1

Since he only makes commission on sales over $1000, he makes commission on $1500 (we find this by doing 2500-1000.) His commission is 15%, so find 15% of $1500:

`.15*1500=225`
So we know how makes $225 in commission.

Now we need to add this to his fixed pay to get his total pay:

`225+300=525`
So his total pay is $525, which is answer 'a'

Hope I helped, and let me know if you have any questions :)