Question

Initial Knowledge CheckGoode Manufacturing pays Donald Sanchez a $590 monthly salary plus a 4% commission on merchandise he sells each month. Assume Donald's sales were$27,800 for last month.Calculate the following amounts:1. Amount of Commission:2. Gross Pay:

Answer 1

Solution:

Given:

$\begin{gathered} monthly\text{ salary}=\text{ \ }590 \\ commission\text{ rate}=4\text{ \%} \\ Sales\text{ made}=\text{ \ }27,800 \end{gathered}$

1) Amount of commission is 4% of merchandise sales made.

Hence,

$\frac{4}{100}\times27800=\text{ \ }1112$

Therefore, the amount of commission is $1112.

2) Gross pay is the total amount recevied.

Hence,

$\begin{gathered} Gross\text{ pay}=590+1112 \\ =\text{ \ }1702 \end{gathered}$

Therefore, the gross pay Donald recieved is $1702.