Question

A salesman’s commission is 5% on the first $10,000 in sales and 3% on the remaining amount in sales beyond the first $10,000. If the total sales were $50,000, find the commission earned by the salesman.

Answer 1

He earns 5% of the first 10,000 therefore:

10,000 * 0.05 = $500

 

And another 3% for those beyond $10,000 (he is left with 50,000 – 10,000 = $40,000)

40,000 * 0.03 = $1,200

 

Therefore the total commission is:

$500 + $1,200 = $1,700