Question

He is paid a commission of 9 percent of his first $6,000 in sales during the month and 14 percent on all sales over $6,000. What is his commission in a month in which he has sales worth $16,120?

Answer 1

$1,956.80

Explanation:

For amounts over $6000, the commission can be computed as ...

0.14s -300 . . . . . . for sales (s) ≥ 6000

So, for $16,120 in sales, the commission is ...

0.14×$16,120 -300 = $2,256.80 -300 = $1,956.80

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The commission schedule suggests that for larger amounts, you divide the problem into two parts: calculate the commission on $6000, and separately calculate the commission on the amount over $6000.

0.14(s -6000) + 0.09(6000)

= 0.14s - 0.14·6000 +0.09·6000

= 0.14s -300 . . . . the formula used above for s ≥ 6000