Question

A salesperson is paid a flat rate plus a fixed percentage of her sales. Last month, she sold $16,000 worth of goods and was paid $1,600. Two months ago, she had $12,000 in sales and was paid $1,400. This month she sold $11,000 worth of goods. How much will she be paid?

Answer 1

Answer:

Total income= $1,350

Step-by-step explanation:

First, we need to calculate the fixed income and variable income. We will use the high-low method:

Variable income sales per dollar= (Highest income - Lowest income)/ (Highest sales - Lowest sales)

Variable income sales per dollar= (1,600 - 1,400) / (16,000 - 12,000)

Variable income sales per dollar= $0.05

Fixed income= Highest income  - (Variable income sales per dollar * Highest sales)

Fixed income= 1,600 - (0.05*16,000)

Fixed income= $800

Fixed income=  Lowest income - (Variable income sales per dollar* Lowest sales)

Fixed income= 1,400 - (0.05*12,000)

Fixed income= $800

Now, for $11,000 sales:

Total income= 800 + 0.05*11,000

Total income= $1,350