Question

A car salesperson earns a base salary of $1,400 per month plus a commission of 5% on sales. How much must the salesperson sell in order to earn at least $4,500 per month?

a. s < 62,000, The salesperson must sell fewer than $62,000 in a month to earn $4,500.
b. s > 62,000, The salesperson must sell more than $62,000 in a month to earn $4,500.
c. s ≤ 62,000, The salesperson must sell a maximum of $62,000 in a month to earn $4,500.
d. s ≥ 62,000, The salesperson must sell a minimum of $62,000 in a month to earn $4,500.

Answer 1

The salesperson must sell a minimum of $62,000 in sales in a month to earn at least $4,500, taking into account their base salary of $1,400 and a commission rate of 5% on sales.

Step-by-step explanation:

To determine how much a car salesperson must sell to earn at least $4,500 per month, we can set up an equation with the given base salary and commission rate. The equation would be as follows:

Base Salary + (Commission Rate × Sales) ≥ Desired Earnings

So plugging in the numbers provided, we get:

$1,400 + (0.05 × s) ≥ $4,500

Solving for s (the amount in sales), we subtract the base salary from both sides:

0.05 × s ≥ $3,100

And then we divide by the commission rate:

s ≥ $62,000

Therefore, the salesperson must sell a minimum of $62,000 in a month to earn at least $4,500. The correct answer is d. s ≥ 62,000, meaning the salesperson must sell more than or equal to $62,000 in a month to meet their earnings goal.