Question

Jim Smith is a salesman who receives a $1,100 draw per week against his commission. He receives a 12% commission as an incentive on all sales. Sales for Jim were $205,000 for the month.
Assuming a four-week month, Jim's commission is ____.

Answer 1

Answer:

$29,000

Explanation:

Given that:

• Draw per week: $1,100
• Commission rate: 12%
• Sales for Jim were $205,000 for the month.
• 4 weeks in a month

Assuming a four-week month, Jim's commission :

Commission on revenue + commission of total draws

= $205,000*12% + 4*$1,100

= $24,600+ $4,400

= $29,000

Hope it will find you well.