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Juan is paid a monthly salary of $500. He is also paid a 10 percent commission on sales he makes. This month, Juan made $7,575 in sales. What is Juan's gross salary for this month?

1 Answer

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Final answer:

Juan's gross salary for the month is calculated by adding his base salary of $500 to the 10% commission he earns on his sales of $7,575, which equals $757.50, resulting in a total of $1,257.50.

Step-by-step explanation:

The student is asking how to calculate Juan's gross salary for the month, given a base salary and commission on sales. Juan receives a monthly salary of $500 and a 10 percent commission on his sales, which this month totaled $7,575. To find Juan's total income, first calculate the commission by taking 10 percent of the sales: 0.10 * $7,575 = $757.50. Then, add this commission to the base salary to find the gross salary: $500 base salary + $757.50 commission = $1,257.50 gross salary for the month.

Juan's gross salary for the month is determined by combining his fixed monthly salary and the commission earned from sales. Given his fixed salary of $500, the commission is calculated as 10 percent of his sales.

To find the commission, multiply the sales amount by the commission rate: $7,575 * 0.10 = $757.50. Adding this commission to his fixed salary provides the gross salary for the month: $500 (fixed salary) + $757.50 (commission) = $1,257.50. Therefore, Juan's gross salary for the month, inclusive of both the fixed amount and the commission based on his sales performance, is $1,257.50. This approach reflects a common compensation structure where individuals receive a combination of a fixed salary and a variable commission based on their sales achievements, incentivizing performance and tying compensation to results.

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