Luis earns a commission by multiplying the sale price of the suit, which is $60 after a 50% discount, by his commission rate of 5%. His final commission is $3.00.
The question asks to calculate the commission earned by Luis on the sale of a suit that is 50% off. The original price of the suit is $120. To calculate the sale price, we take 50% off, which is the same as multiplying $120 by 0.50. The sale price of the suit is therefore $120 × 0.50 = $60. Next, we calculate the commission by applying Luis's commission rate of 5%. We convert 5% to a decimal (0.05) and multiply it by the sale price of the suit.
Therefore, the commission Luis earns is $60 × 0.05 = $3.00.
In conclusion, Luis will make a commission of $3.00 on the sale of the discounted suit.