Final answer:
A car salesman with a base monthly salary of $3,750 and an 8.5% commission on $138,000 in sales for the month would earn $15,480 in total.
Step-by-step explanation:
To calculate the total monthly earnings of a car salesman who gets paid a base salary of $3,750 plus 8.5% commission on his total sales, we first need to calculate the commission earned on the total sales and then add it to the base salary. This month, the salesman sold 5 cars for a total of $138,000. To find the commission earned, we multiply the total sales by the commission rate:
Total Commission = Total Sales × Commission Rate
Total Commission = $138,000 × 8.5%
To convert the percentage to a decimal, we divide by 100:
8.5% = 8.5 ÷ 100 = 0.085
Now, we can find the commission:
Total Commission = $138,000 × 0.085 = $11,730
The commission earned for the month is $11,730. Next, we add this commission to the base salary to find the total earnings:
Total Earnings = Base Salary + Commission
Total Earnings = $3,750 + $11,730 = $15,480
Therefore, the salesman's total monthly earnings are $15,480.