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.



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

Group of answer choices

$225

$325

1 answer

To calculate Seth's commission, we need to determine the amount of sales that fall under the first $1,000 and the amount of sales that fall above $1,000.

Amount of sales under $1,000: $1,000 * 10% = $100

Amount of sales above $1,000: $2,500 - $1,000 = $1,500

Commission on amount above $1,000: $1,500 * 15% = $225

Total commission = Commission on amount under $1,000 + Commission on amount above $1,000 = $100 + $225 = $325

Therefore, Seth's total commission was $325.