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Andy receives a monthly salary of $1,000 plus commission of 3% on all sales over $12,000. If his sales were $43,000 this month, what is his total pay?

a) $1,290
b) $1,400
c) $1,520
d) $1,650

User Teknoraver
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1 Answer

6 votes

Final answer:

To find Andy's total pay, subtract the sales threshold from the total sales to find the commission-eligible amount, calculate the commission, and then add it to the base salary. The correctly calculated total pay is $1,930, despite this figure not matching any of the provided choices.

Step-by-step explanation:

The student asked how to calculate the total pay for Andy, who receives a monthly salary of $1,000 plus a 3% commission on all sales over $12,000. To find the total pay, we first need to calculate the total amount of sales that are eligible for the commission which is the amount of sales above $12,000. Andy's sales this month were $43,000, so we subtract the threshold:

  • Sales eligible for commission: $43,000 - $12,000 = $31,000

Next, we calculate the commission on the eligible sales:

  • Commission: 3% of $31,000 = 0.03 × $31,000 = $930

Finally, we add the base salary to the commission:

  • Total pay = Base salary + Commission = $1,000 + $930 = $1,930

The answer is not among the choices given, which might be a typo in the question or choices. Assuming there's a typo or mistake, it appears that the closest correct answer would be $1,930, which is not listed.

User Klefevre
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