Question

If a licensee is paid a salary of $600 per month plus one-half of the office's 6% fee on all sales, what must the licensee's monthly sales be for the licensee to receive a total monthly income of $2,220?

A. $27,000
B. $37,000
C. $54,000
D. $74,000

Answer 1

To receive a total monthly income of $2,220, the licensee's monthly sales must be $54,000.

Step-by-step explanation:

To determine the monthly sales needed for the licensee to receive a total monthly income of $2,220, we can set up an equation.

Let's denote the monthly sales as 'x'. The licensee's salary is $600 per month, and they also receive one-half of the office's 6% fee on all sales. This fee can be calculated as 0.5*0.06*x = 0.03x.

So, the equation becomes:

600 + 0.03x = 2,220

Now, we can solve for 'x' by isolating it on one side of the equation:

0.03x = 2,220 - 600

0.03x = 1,620

x = 1,620 / 0.03

x = 54,000

Therefore, the licensee's monthly sales must be $54,000 for them to receive a total monthly income of $2,220.