Question
As a real estate agent, Lauren earns 2.5% commission on her sales.
Lauren’s goal is to earn $5,000 in commission this month.
What is the dollar amount of sales that Lauren must have this month to earn $5,000 in commission?
Answers
GPT-4o mini
To find out the dollar amount of sales that Lauren must achieve to earn $5,000 in commission at a rate of 2.5%, you can use the formula:
\[
\text{Commission} = \text{Sales} \times \text{Commission Rate}
\]
In this case, you want to find the Sales given that:
\[
\text{Commission} = 5000
\]
\[
\text{Commission Rate} = 2.5\% = 0.025
\]
Rearranging the formula to solve for Sales:
\[
\text{Sales} = \frac{\text{Commission}}{\text{Commission Rate}}
\]
Substituting the numbers into the formula:
\[
\text{Sales} = \frac{5000}{0.025}
\]
Now, calculating the sales amount:
\[
\text{Sales} = 200,000
\]
Therefore, Lauren must have $200,000 in sales this month to earn $5,000 in commission.
\[
\text{Commission} = \text{Sales} \times \text{Commission Rate}
\]
In this case, you want to find the Sales given that:
\[
\text{Commission} = 5000
\]
\[
\text{Commission Rate} = 2.5\% = 0.025
\]
Rearranging the formula to solve for Sales:
\[
\text{Sales} = \frac{\text{Commission}}{\text{Commission Rate}}
\]
Substituting the numbers into the formula:
\[
\text{Sales} = \frac{5000}{0.025}
\]
Now, calculating the sales amount:
\[
\text{Sales} = 200,000
\]
Therefore, Lauren must have $200,000 in sales this month to earn $5,000 in commission.