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.