Question

Wai Yu So Tan sells tanning beds. He earns 6% of the first $10,000 in sales, then 4.75% on the rest. Calculate the commission he receives on a sale of $35,000. *

Answer 1

Total commission on sale of $35,000 = $1,787.5

Explanation:

Given:

Commission on first $10,000 = 6%

Commission on rest = 4.75%

Find:

Total commission on sale of $35,000

Computation:

Total commission on sale of $35,000 = 10,000[6%] + 25,000[4.75%]

Total commission on sale of $35,000 = $600 + $1187.5

Total commission on sale of $35,000 = $1,787.5