Question

Mike is a sales person in a retail carpet store he paid 500 base salary per month plus 5% commission on sales over 10,000. His sales this month were 23,750 his total deductions were 152.75 What is the total amount on which mike could earn commission? What was the total amount of mikes commission? What was mikes base salary plus commission? What's mike net pay?

Answer 1

Total amount on which Mike could earn commission:

Mike can earn amounts on sales over $10,000 so the commission amount is:

= 23,750 - 10,000

= $13,750

Total amount of Mike's compensation:

= 5% * 13,750

= $687.50

Mikes base salary plus commission:

= 500 + 687.50

= $1,187.50

Mike's net pay:

= Gross pay - deductions

= 1,187.50 - 152.75

= $1,034.75