Question

He earns a 5% commission on total sales up to 20,000
he earns a 3% commission on any amount over 20,000

This month Dan had 35,000 in sales, what amount of commission in dollars did he earn

Answer 1

To calculate Dan's commission based on his sales of $35,000, we can break it down into two parts:

1. For the first $20,000 in sales, he earns a 5% commission.
2. For the remaining sales (which is $35,000 - $20,000 = $15,000), he earns a 3% commission.

Now we can calculate the commission for each part:

1. Commission on the first $20,000:
\[
\text{Commission} = 20,000 \times 0.05 = 1,000 \text{ dollars}
\]

2. Commission on the remaining $15,000:
\[
\text{Commission} = 15,000 \times 0.03 = 450 \text{ dollars}
\]

Finally, we add the two commission amounts together to find the total commission earned:
\[
\text{Total Commission} = 1,000 + 450 = 1,450 \text{ dollars}
\]

Therefore, Dan earned **$1,450** in commission this month.