Question

A car salesman earns $30,000 per year, plus 8% commission on sales over $500,000. During one year, the salesman totaled $850,000. Calculate the salesman’s total earnings for the year. $58,000 $350,000 $79,000 $28,000

Answer 1

$58,000

Explanation:

The car salesman earns $850,000 in total. Of the $850,000, $30,000 is his basic earnings and therefore the remaining comes from commission. For sales over $500000. The sales over $500000 is:

`800000-500000=350000`

Therefore 8% of $350000:

`350000\cdot{0.08}=28000`

The total earnings is his basic earnings of $30,000 plus the commission:

`28000+30000=58000`

The total earnings is $58,000