Question

Sarah is a psychologist at an practise. she earns a basic salary of R3000 per month as well as 20% commission on income up to R 5000. She receives an additional 10% bonus on top of the normal commission rate on earning above R 5000. If Sarah did work to the value of R 12000 ,how much did she earn in total???​

Answer 1

Sarah earns R6 100 in total for her work to the value of R12 000.

Explanation:

To calculate Sarah's earnings, we need to break down her income into two parts: the commission she earns on income up to R5 000, and the bonus commission she earns on income above R5 000.

Commission on income up to R5 000:

Sarah's basic salary is R3 000 per month, and she earns 20% commission on income up to R5 000. So for the first R5 000 of income, Sarah's commission is:

`\text{Commission on income up to} \ R5, 000 = 20\% \ \text{of} \ R5, 000 = R1 ,000`

Bonus commission on income above R5 000:

Sarah also receives a 10% bonus on top of the normal commission rate on earning above R5 000. So for the amount earned above R5 000, her commission is:

`\text{Commission on income above} \ R5, 000 = (20\% + 10\%) of (R12, 000 - R5, 000) = 30\% \ \text{of} \ R7, 000 = R2 ,100`

Total earnings:

Sarah's total earnings are the sum of her basic salary and the commission she earns:

Total earnings = Basic salary + Commission on income up to R5 000 + Commission on income above R5 000

`\text{Total earnings} = R3, 000 + R1 ,000 + R2 ,100`

`\text{Total earnings} = 6,100`

Therefore, Sarah earns R6 100 in total for her work to the value of R12 000.