Question

Dan earns 5% in commission on total sales up to 20,000.
he earns a 3% commission on any amount over 20,000
if he earned 35,000 in sales what amount of commission in dollars he earn

Answer 1

To calculate Dan's total commission based on his sales of $35,000, we can break it down into two parts: the commission on the first $20,000 and the commission on the amount over $20,000.

1. **Commission on the first $20,000:**
- Commission rate = 5%
- Commission earned = 5% of $20,000
- Commission earned = 0.05 × $20,000 = $1,000

2. **Commission on the amount over $20,000:**
- Total sales = $35,000
- Amount over $20,000 = $35,000 - $20,000 = $15,000
- Commission rate = 3%
- Commission earned on the excess = 3% of $15,000
- Commission earned = 0.03 × $15,000 = $450

3. **Total commission:**
- Total commission = Commission on first $20,000 + Commission on amount over $20,000
- Total commission = $1,000 + $450 = $1,450

Therefore, Dan earned a total commission of **$1,450** on sales of $35,000.