Question

Tom's salary is $4,250.00 per month plus a commission of 5% of his monthly sales. Tom's sales this month are $10,250.00. What is his total income for this month?

a)$9,375.00
b)$4,762.50
c)$10,462.50
d)$31,500.00

Answer 1

Tom's total income for this month is $4,762.50.

Step-by-step explanation:

To calculate Tom's total income for this month, we need to add his salary of $4,250.00 to his commission. His commission is found by multiplying his monthly sales ($10,250.00) by 5% (0.05).

Commission = $10,250.00 * 0.05 = $512.50

Therefore, his total income for this month is $4,250.00 + $512.50 = $4,762.50.

Answer: Option B) $4,762.50