Question

Pedro makes a base monthly salary of $1500. As a vendor, he must sell $20000 worth of items per month. He also makes a 4% commission on all sales beyond the monthly quota. If Pedro sold $26000 worth of items this month, what is his total salary for the month including base salary and commission to the nearest dollar?

Answer 1

$2540

Explanation:

Given parameters:

Base salary of Pedro = $1500

Amount of commission on sales = 4%

Sales = $26000

Unknown:

His total salary including base salary and commission = ?

Solution:

His total salary;

Total salary = Base Salary + (percent on commission x sales)

Total salary = $1500 + (
`(4)/(100)` x $26000)

Total salary = $1500 + $1040

Total salary = $2540