Question

Rhea obtained a CO-OP credit working at a computer store. They have now hired her for a summer job with the store. She makes $8/hour, plus a 5% commission on sales. Which expression best describes Rhea's total earnings? Explain. a) E = 8h + 5s b) E = 8h + .50s c) E = 8h + .005s d) E = 8h + 0.05s Rhea worked 15 hours last week and made $260 in total. What were her total sales in computers for the week? Why do you think employers offer commissions to their employees? Do you think there are any potential problems with this form of earnings?

Answer 1

d) E = 8h + 0.05s

Total Sales = $2800.

Explanation:

Let Rhea's hourly pay =h

If she makes $8 per hour, therefore total pay for h hours =$8h

Let the volume of sales = s

Since she earns 5% commission on sales = 5% of s = 0.05s

The sum of hourly pay and commissions is Rhea's total earnings, E.

We therefore have:

Total Earnings, E=8h+0.05s

Last week, Rhea worked 15 hours and made $260 in total.

h=15 weeks

E=$260

Substitution into the formula: E=8h+0.05s

260=8(15)+0.05s

0.05s=260-8(15)

0.05s=140

Divide both sides by 0.05

s=$2800

Therefore, her total computer sales for the week is $2800.

• Commissions are a way to motivate employees to make sales rather than just passing time since their earning is dependent on their volume of sales.

• There will be a problem with this form of earning if the percentage of the sales commission is designed such that it takes a large chunk of the profit.