Question

A salesperson is paid a base salary of $1700 per month plus a 4.25% commission on sales. How much sales must he generate in order to earn $2,816.90 per month in total compensation?

Answer 1

Salesperson must generate a sales of $ 26280 in order to earn $2,816.90 per month in total compensation

Solution:

Given that,

A salesperson is paid a base salary of $1700 per month plus a 4.25% commission on sales

Therefore,

Total salary = 1700 + 4.25 % commission on sales

How much sales must he generate in order to earn $2,816.90 per month in total compensation?

Therefore, let us first subtract the basic salary

2816.90 - 1700 = 1116.9

We have to find the sales he must generate

Let "x" be the sales he must generate

4.25 % of x = 1116.9

Therefore,

$4.25 \% \times x = 1116.9\\\\\frac{4.25}{100} \times x = 1116.9\\\\0.0425x = 1116.9\\\\x = \frac{1116.9}{0.0425}\\\\x = 26280$

Thus he must generate a sales of $ 26280 in order to earn $2,816.90 per month in total compensation