Question

As the director of sales for your hotel, you earn a 0.5% commission on total sales from your sales team. Assuming there are 3 sales people averaging $125,000, $144,000 and $148,000 per month in sales, what would be your expected monthly commissions

Answer 1

Answer: $2,085

Explanation:

Average monthly sales by the three salesperson are;

$125,000

$144,000

$148,000

Therefore, average total monthly sales by the three salesperson equals;

$125,000+$144,000+$148,000 = $417,000

Average total sales per month = $417,000

Monthly commission percentage = 0.5%

Monthly commission = 0.5% × 417,000

(0.5 ×417000) ÷ 100

208500 ÷ 100 = $2085

Monthly commission = $2,085