Question

Madelyn Logan is an office furniture dealer who earns a $25,000 base salary. She also earns an 8% commission on sales. How much must she sell to earn a total of $60,000?

Answer 1

Madelyn Logan must sell $437,500 worth of office furniture to achieve a total earning of $60,000, factoring in her $25,000 base salary and 8% commission on sales.

Step-by-step explanation:

To calculate how much Madelyn Logan must sell to earn a total of $60,000, we must consider her base salary and commission. She has a base salary of $25,000, so the remainder of her earnings must come from commissions. If she needs to make $60,000 in total, subtract her base salary from this amount to find the necessary commission earnings:

$60,000 (total earnings) - $25,000 (base salary) = $35,000 (required commission earnings)

To find out how much she needs to sell to earn $35,000 in commissions at an 8% commission rate, we divide the required commission earnings by the commission rate:

$35,000 / 0.08 = $437,500

Therefore, Madelyn Logan must sell $437,500 worth of office furniture to earn a total of $60,000.