Question

A car dealership pays a wholesale price of $12,000 to purchase a vehicle. This car dealership pays the salesperson commission for selling the car equal to 6.5% of the sale price. How much commission did the salesperson make when they decided to offer a 10% discount on the price of the car?

Answer 1

Let's first find the sale price after offering a 10% discount:

Sale Price = Wholesale Price - Discount
Sale Price = $12,000 - 10% of $12,000
Sale Price = $12,000 - $1,200
Sale Price = $10,800

Now, we can calculate the commission earned by the salesperson:

Commission = 6.5% of Sale Price
Commission = 6.5% of $10,800
Commission = 0.065 x $10,800
Commission = $702

Therefore, the salesperson made a commission of $702 when the dealership offered a 10% discount on the price of the car.