Question

Dan and Mike work in the sales department for a sporting goods company. Each man only gets paid by commission. Dan gets a 15% commission on every bike he sells. Mike gets a 10% commission on every tent he sells. If Dan sold 227 bikes at $70 each and Mike sold 251 tents at $90 each, who made more money last month and how much more money did he make?

a. Dan, $124.50
b. Mike, $1005.00
c. Dan, $2383.50
d. Mike, $6700.00

Answer 1

Dan made more money last month and he made $129 more than Mike.

Step-by-step explanation:

To determine who made more money last month, we need to calculate the commission earned by each person. Dan sold 227 bikes at $70 each, so his total sales amount is 227 * $70. To calculate his commission, we multiply his total sales amount by his commission rate of 15%. So Dan's commission would be (227 * $70) * 0.15. Similarly, Mike sold 251 tents at $90 each, so his total sales amount is 251 * $90. Mike's commission would be (251 * $90) * 0.10.

To find out who made more money, we compare the commissions earned by both Dan and Mike. Calculate their commissions using the formulas above. It turns out that Dan made $2383.50 in commission, while Mike made $2254.50 in commission. Therefore, Dan made more money last month.

To find out how much more money Dan made than Mike, subtract Mike's commission from Dan's commission. The difference is $2383.50 - $2254.50 = $129.