Final answer:
The rate of commission can be calculated using the formula: Rate of Commission = (Commission Earned / Total Sales) × 100%. This percentage tells you the portion of sales that a salesperson earns as commission. In case of sales tax, the total cost includes the original price plus tax calculated by multiplying the price by the sales tax rate.
Step-by-step explanation:
The formula to find the rate of commission is determined by the total amount of sales and the commission earned from those sales. The basic formula is:
Rate of Commission = (Commission Earned / Total Sales) × 100%
To illustrate, if a salesperson earns a commission of $500 on total sales of $10,000, the rate of commission would be calculated as follows:
Rate of Commission = ($500 / $10,000) × 100% = 5%
This shows that the salesperson is earning a 5% commission on their sales.
Similarly, to calculate the amount of sales tax, you multiply the price by the rate of sales tax and then add it to the original amount.
For example, if an item costs $100 and the sales tax rate is 8%, the sales tax would be $8, making the total cost $108.