Question

A sales clerk earns $180.00 weekly. In addition, he gets a commission of 5% on all sales over $500. If his sales for the week were $750, which of the following was his total earnings for the week?

Option 1: $205.00
Option 2: $190.00
Option 3: $197.50
Option 4: $185.00

Answer 1

To calculate the sales clerk's total earnings, subtract $500 from the total sales to find the amount eligible for commission, multiply it by the 5% commission rate, and then add it to the weekly salary.

Step-by-step explanation:

The student's question asks how to calculate a sales clerk's total earnings for the week, given a weekly salary and a commission on sales over a specific amount. To solve this, we can first calculate the commission earned on the excess sales over $500 by subtracting $500 from the total sales of $750, leaving us with $250. Then we apply the 5% commission rate to this amount, multiplying $250 by 0.05, which results in $12.50. This commission is added to the fixed weekly salary of $180.00, leading to a total earning of $192.50 for the week. However, this number does not match any of the options provided, which suggests a possible error in the question or the answer choices.