Question

A representative at a local gym earns 6% commission for each $360 annual membership sold. After paying out the commission, how much does the gym keep from the sale of an annual membership?

a) $18.00
b) $21.60
c) $33.84
d) $46.80

Answer 1

After calculating 6% of the $360 membership fee, which is $21.60, the gym retains $338.40 from the sale of each annual membership after the commission is paid out.

Step-by-step explanation:

The question asks us to calculate how much the gym keeps after paying out the commission for a $360 annual membership when the representative earns a 6% commission. To find out the commission amount, we need to calculate 6% of $360. This is done by multiplying $360 by 0.06 (which is the decimal equivalent of 6%).

The commission amount is $360 * 0.06 = $21.60.

To find out how much the gym keeps, we subtract the commission from the total cost of the membership:

$360 - $21.60 = $338.40

Therefore, after paying out the commission, the gym keeps $338.40 from the sale of an annual membership.