To solve for the total sales of the salesperson, we can set up an equation based on the commission structure provided.
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Commission Structure:
- For the first $5,000 in sales, the commission is 5%.
- For sales over $5,000, the commission is 7.5%.
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Commission Calculation:
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If the total sales \( S \) is less than or equal to $5,000: \[ \text{Commission} = 0.05 \cdot S \]
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If \( S \) is greater than $5,000: \[ \text{Commission} = (0.05 \cdot 5000) + (0.075 \cdot (S - 5000)) \]
The commission on the first $5,000: \[ 0.05 \cdot 5000 = 250 \]
Thus, for \( S > 5,000 \): \[ \text{Commission} = 250 + 0.075 \cdot (S - 5000) \]
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Set Up the Equation: We know the commission earned is $1,375: \[ 250 + 0.075 \cdot (S - 5000) = 1375 \]
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Solve for \( S \):
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Subtract 250 from both sides: \[ 0.075 \cdot (S - 5000) = 1375 - 250 \] \[ 0.075 \cdot (S - 5000) = 1125 \]
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Divide by 0.075: \[ S - 5000 = \frac{1125}{0.075} \] \[ S - 5000 = 15000 \]
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Add 5000 to both sides: \[ S = 15000 + 5000 \] \[ S = 20000 \]
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Therefore, the total sales last month were $20,000.