Question

Edgar Anderson earns $200 a week plus a 15% commission on all sales over $1,000. If Mr. Anderson's sales for one week are $2,500, what is his gross pay for that week?
A. $350
B. $425
C. $525
D. $575

Answer 1

Mr. Anderson's base salary is $200. He gets that no matter what. Then he will earn additional money if he sells over $1,000 worth of goods. He sold $2,500; therefore, he sold $2,500 - 1,000 = $1,500 on which he can earn a commission. His commission is 15%; therefore, 0.15 x $1,500 = $225.00 in commissions. So his total salary for the week is what? $200 base + $225 commission = ??

Answer 2

$425.00

Answer 3

575