Question

Oscar sells internet access subscriptions by telephone. He receives 12% of the first $1,000 and 15% on the balance over $1,000. Last month he sold $7,500 worth of internet access subscriptions. What was his commission for last month?

Answer 1

The commission is calculated by multiplying the percentage by the value sold, in this case we have two commission rates, one for the first 1000 F and one for the remaining 6500 R, so to calculate the total commission C each commission must be calculated and add them:

$F = 0.12 * \ 1000 = \ 120\\R = 0.15 * \ 6500 = \ 975\\C = F + R = \ 1095$

Answer

Oscar's commission last month was  $1095