Question

Peter makes a base monthly salary of $2,500. As a vendor, he must sell $15,000 worth of items per month. He also makes an 18% commission on all sales beyond the monthly quota. If Peter sold $24,600 worth of items this month, what is his total salary for the month including base salary and commission to the nearest dollar?

Answer 1

Monthly salary= $4,228

Explanation:

Giving the following information:

Fixed salary= $2,500

Sales commission= 10%

Sales= $24,600

To calculate the monthly salary, we need to use the following formula:

Monthly salary= fixed income + commission

Commission= (24,600 - 15,000)*0.18

Commission= $1,728

Monthly salary= 2,500 + 1,728

Monthly salary= $4,228