Question

Nola Potter earns a salary of $1,200 a month and a commission of 7.5% on all sales over $4,000. This month her sales were $21,400. Find her total earnings for the month.

Answer 1

Answer: $5,605

Explanation:

Monthly earning = 1200

Commission = 7.5% on sales over 4000

Current month sales = 21400

Total monthly earning :

$4000 + commission on sales over 4000

Total earning for the current month:

$4000 + commission on sales

Commission on current month's sales:

7.5% of 21400

0.075 × $21,400

= $1605

Total amount earned :

$4000 + $1605 = $5,605