Seth is paid on a graduated commission scale. He earns 10% commission on is first $1,000 in sales. He earns 15% commission on all sales over $1,000.

Question

Last month, his total sales were $2,500. What was his total commission?

Group of answer choices

$125

$375

$325

$225

Answer 1

To calculate Seth's total commission, we need to find out the amount of sales that qualify for each commission rate.

First, we calculate the amount of sales that qualify for the 10% commission rate. Since Seth earns 10% commission on the first $1,000 in sales, the amount that qualifies for this rate is $1,000.

Next, we calculate the amount of sales that qualify for the 15% commission rate. Since Seth earns 15% commission on all sales over $1,000, the amount that qualifies for this rate is $2,500 - $1,000 = $1,500.

Now, we can calculate the commission amount for each rate.

For the 10% commission rate: $1,000 * 10% = $100

For the 15% commission rate: $1,500 * 15% = $225

Finally, we add these two commission amounts together to find Seth's total commission:

$100 + $225 = $325

Therefore, Seth's total commission for last month was $325.