Question

Alec sells life insurance part-time, door-to-door. He is paid a monthly commission. He receives 12% commission of his

first $1,000 in sales and 15% commission of the balance of his sales. Last month he sold $3,200 worth of life insurance,
How much commission did Alec earn last month?
A $75
B $450
C $325
D $150

Answer 1

B) $ 450

Explanation:

Commission Alec earned for first $1000 = 12% of 1000

=0.12 * 1000

= $ 120

Balance sales amount = 3200 - 1000 = $ 2200

Commission Alec earned for the balance $2200 = 15 % of 2200

=0.15 * 2200

= $ 330

Commission earned by Alec last month = 120 + 330 = $450