Question

He is paid a straight commission if 1.5 percent of the contract plus an annual bonus of 2.5 percent of total contract over$1,500,000per year. What is his total pay for a year in which he had total contract for $2,555,500

Answer 1

First, let's calculate the straight commission of 1.5 percent of the total contract:

1.5/100 * $2,555,500 = $38,332.50

Then, since the total contract is over $1,500,000 for the year, he also earns a bonus. The bonus is calculated on the amount over $1,500,000. So, the amount over $1,500,000 is $2,555,500 - $1,500,000 = $1,055,500.

The bonus is 2.5 percent of this amount:

2.5/100 * $1,055,500 = $26,387.50

So, the total pay for the year would be the sum of the straight commission and the bonus:

$38,332.50 (straight commission) + $26,387.50 (bonus) = $64,720