Question

"Shawn earns a 5% commission for all cars he sells. If Shawn receives $5000 in commission this year, what is the dollar amount of his sales?

a) $25,000
b) $20,000
c) $10,000
d) $1,000"

Answer 1

Shawn made $100,000 in sales to earn a $5000 commission at a 5% rate.

Step-by-step explanation:

To determine the dollar amount of sales that Shawn made to earn a $5000 commission at a rate of 5%, we need to use the formula for calculating commission: commission = rate × sales. Here, the commission is $5000 and the rate is 5% or 0.05 in decimal form. Rearranging the formula to solve for sales gives us sales = commission / rate. Plugging in the values gives us sales = $5000 / 0.05, which equals $100,000. Therefore, the correct answer is $100,000 in sales.