Question

Terry sells cars. She earns a salary of $900 per month, plus a commission of 2% on all sales. In December, Terry sold $162,000 worth of cars. What were her total earnings in December?

A. 4140.00
B. $3469.00
C. $3679.00

Answer 1

Terry's total earnings for December consist of her base salary of $900 and her commission of $3,240 from car sales, totaling $4,140.

Step-by-step explanation:

The student's question involves calculating Terry's total earnings for the month of December, taking into account her base salary and the commission she receives on her sales. To solve this, we need to calculate Terry's commission by taking 2% of her total sales for the month, which were $162,000. The commission is found by multiplying $162,000 by 0.02, yielding $3,240. This amount is then added to her base salary of $900 to calculate the total earnings for December. Therefore, Terry's total earnings for December are calculated as follows:

Salary: $900
Commission: $162,000 × 0.02 = $3,240
Total Earnings: $900 + $3,240 = $4,140

The answer is A. $4140.00.