Question

lesson - by - lesson review (continued)
review exercises
compute the straight commission.

1. $7,600 total sales, 4% commission rate.
2. $122,360 total sales, 6\frac{1}{4}% commission rate.

compute the straight commission and gross pay (the gross pay is whichever is higher: the minimum salary or the straight commission).

1. minimum weekly salary is $185. rate of commission is 6.5%. weekly sales are $3,790.
2. minimum weekly salary is $250. rate of commission is 5.65%. weekly sales are $1,515.
3. suzie clarke sells real estate at a 7% straight commission. what is her commission on the sale of a $98,000 home?
4. walt watson sells snowmobiles, dirt bikes, and atvs at a commission of 18%. last week his sales totaled $26,348. what is his commission?
5. algebra celine mccaw sells jewelry. she is guaranteed a minimum salary of $1,950 per month plus commission of 6.75% of her total sales. how much in total sales does she need in order to have a gross pay for the month of $4,190?

1.7 graduated commission (pp. 115 - 117)
compute the total graduated commission.
carl brock earns a commission rate of 6% for the first $6,500 in sales and 9% on sales over $6,500. find the total graduated commission on sales of $10,500.
find the graduated commission. multiply and add.
total graduated commission = sum of commissions for all levels of sales
$6,500 × 0.06 = $390
($10,500 - $6,500) × 0.09 = $360
$390 + $360 = $750 total graduated commission
review exercises
compute the graduated commission.

1. commission: 25% on the first $1,900; 27% on the next $1,000; 30% on sales over $2,900. total sales equal $3,500. what is the total commission?
2. commission: 5% on the first $4,000; 6\frac{1}{2}% on the next $6,000; 11% on sales over $10,000. total sales equal $12,360. what is the total commission?
3. tom avido is a roofing material sales representative. he receives a graduated commission of 5% on the first $5,000 of sales, 6.5% on the next $15,000, and 7% on sales over $20,000. what is his commission on $23,458 in sales?
4. connie hamm demonstrates microwave ovens. she earns $5.00 per demonstration for the first 10 demonstrations and $6.00 for each demonstration over 10. for every microwave sold, she earns $10.55. what is connie’s commission on a day in which she makes 12 demonstrations and 4 sales?
5. dennis hampton earns a straight commission of 7% on sales of $5,000 or less and 9% on sales in excess of $5,000. one week dennis had a gross pay of $578. what were his total sales for that week?

Explanation:

Problem 44

Step1: Convert % to decimal

$4\% = 0.04$

Step2: Calculate straight commission

$\$7,600 \times 0.04$

Step1: Convert % to decimal

$6\frac{1}{4}\% = 6.25\% = 0.0625$

Step2: Calculate straight commission

$\$122,360 \times 0.0625$

Step1: Convert % to decimal

$6.5\% = 0.065$

Step2: Calculate commission

$\$3,790 \times 0.065 = \$246.35$

Step3: Compare to min salary

$\$246.35 > \$185$

Answer:

$\$304$

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Problem 45