Answer:
$20,000 = sales
Step-by-step explanation:
Giving the following information:
Fixed salary= $300
Commission rate= 1% of sales
First, we need to establish the net income formula:
Net income= 300 + 0.01*sales
Now, the sales required for $500 net income:
500= 300 + 0.01sales
200/0.01 = sales
20,000 = sales
Prove:
Net income= 300 + 0.01*20,000
Net income= $500
