Question

Mr. Pate earns a base salary of $2,500 per month plus commission on his total sales. Last month he had sales that totaled $17,560 and his monthly earnings were $3,290.20. What percent commission does Mr. Pate earn? Round to the nearest tenth if necessary.

Answer 1

Mr. Pate's commission rate is calculated by subtracting his base salary from his total earnings to find the commission earned, then dividing this by his total sales. It comes out to 4.5% when rounded to the nearest tenth.

Step-by-step explanation:

To determine the percent commission Mr. Pate earns, we need to calculate the difference between his total monthly earnings and his base salary to find the amount earned from commission. Then we will determine what percentage that commission is of his total sales.

1. Subtract the base salary from the total monthly earnings to find the commission amount: $3,290.20 - $2,500 = $790.20.
2. Divide the commission amount by total sales to find the commission rate: $790.20 / $17,560 = 0.045 or 4.5%.

Therefore, Mr. Pate's commission rate is 4.5%, rounded to the nearest tenth.