Question

A car dealership pays an incentive bonus to any salesperson who can sell over $500000 in cars in one month. The bonus is (1)/(4)% of the salesperson's total sales in the month. Calculate Matt's bonus if he sold $720000 worth of cars in a month.

Answer 1

To calculate Matt's bonus, convert the bonus percentage to decimal form (0.0025) and multiply it by his total sales. Matt's bonus for selling $720,000 worth of cars is $1,800.

Step-by-step explanation:

The student has asked how to calculate Matt's bonus if he sold $720,000 worth of cars, given that the car dealership pays a bonus of (1)/(4)% of the salesperson's total sales in a month for any salesperson who can sell over $500,000 in cars in one month. To find Matt's bonus, follow these steps:

1. First, convert the percentage bonus to its decimal form by dividing 1/4 by 100, which results in 0.0025.
2. Then, multiply Matt's total sales of $720,000 by 0.0025 to determine the bonus amount.

By performing the multiplication, we get:

Matt's bonus = $720,000 × 0.0025 = $1,800.

Therefore, Matt's incentive bonus for the month is $1,800.