Question

Mark makes commission on his sales of software. If he sells up to $20,000 in one month his commission is 10% of the total. If he sells more than $20,000 in one month he earns 15% of the total. If Mark sold $13,500 worth of software last month and $26,700 this month, how much total commission did he earn?
A. $4,020
B. $6,030
C. $5,355
D. $4,005

Answer 1

The answer is C. $5,355

In order to find this amount you need to find how much he makes in each month individually. We'll start with month one where he sold $13,500 worth of software. Since that number is under $20,000 we know that he makes 10%. So to find his earnings, we simply multiply the told sold by the percentage. 

$13,500 * 10% = $1,350

Now we need to find the amount for month two. Since he sold $26,700, which is more than $20,000 we know that he gets the 15% of the amount sold. Similarly to last time, we'll multiply the two together. 

$26,700 * 15% = $4,005

Now you can combine the two of them to find the overall amount. 

$1,350 + $4,005 = $5,355