Question

A car dealership pays you 5% commision on your first 10,00 car sales and 8% commission on the sale amount over 10,000. If you sold a 12,00 car, how much is your commission

Answer 1

You get 5% for 10,000.

You get 8% anything over 10,000.

You sold 12,000, which means you had 2,000 more than 10,000.

Calculate the commission on each amount with the appropriate rate:

10,000 * 0.05 = 500

2,000 * 0.08 = 160

Total pay: 500 + 160 = $660