Question

Susan has a job selling cars, and earns 1.25% commission on the first $100,000 in sales,The commission increases to 4.95% on the next $200,000. Last month her total sales were$387,000. How much was her commission if she received 7.25% for any sales over $300,000

Answer 1

Susan earns a commission based on car sales made.

Given:

Total sales made for the month = $387,000

Her commission is calculated based on levels and commision rate for each level.

On the first $100,000, she earns 1.25% commission.

Total sales at this level is $100,000

`\begin{gathered} \text{Commision made on the first \$100,000 is;} \\ (1.25)/(100)*100000=\text{ \$1,250} \\ =\text{ \$1,250} \end{gathered}`

On the next $200,000, she earns 4.95% commission.

Total sales at this level is $300,000

`\begin{gathered} \text{Commision made on the next \$200,000 is;} \\ (4.95)/(100)*200000=\text{ \$9,900} \\ =\text{ \$9,900} \end{gathered}`

On the next $87,000, total sales at this level is $387,000. She earns 7.25% commission for sales above $300,000.

`\begin{gathered} \text{Commision made on the next \$87,000 is;} \\ (7.25)/(100)*87000=\text{ \$6,}307.50 \\ =\text{ \$6,}307.50 \end{gathered}`

Therefore, Susan's total commission received for the month is;

`\begin{gathered} \text{ \$1250 + \$9900 + \$6307.50} \\ =\text{ \$17,457.50} \end{gathered}`

Hence, her commission received in total for the sales made is $17,457.50