1-6 calculating commissions\nif you work in the retail business, you might earn a commission. with a…

1-6 calculating commissions\nif you work in the retail business, you might earn a commission. with a commission, you are paid according to how much you actually sell. you might be paid a commission only, or you might be guaranteed a minimum salary. in that case, your commission for the pay period is compared to your minimum salary. your gross pay is the greater of the two.\ncommission = total sales × commission rate\ngross pay = salary or commission (whichever is greater)\nexample\nfind the gross pay.\nsandra powers works in a clothing boutique. she is guaranteed a minimum weekly salary of $320, or 6.5 percent of her sales, whichever is greater. if she sold $5,000 worth of clothing and accessories last week, what is her gross pay?\n1. find her commission.\n$5,000.00×0.065 = $325 commission\n2. find her gross pay.\nsalary = $320\n$325 > $320.\ngross pay is $325.\npractice\nfind the commission.\nsales position total sales × commission rate = commission\n1. cosmetics $2,500 × 12% =\n2. hardware 5,800 × 5.5% =\n3. shoes 9,750 × 3.25% =\nfind the commission and gross pay.\nsalesperson minimum weekly salary total weekly sales × commission rate = weekly commission gross pay\n4. b. adams $500 $5,200 × 8.45% =\n5. k. brown 775 12,000 × 6.825% =\n6. c. sumner 1,150 9,500 × 13.5% =\n7. standardized test practice richard klein works as an auto mechanic and earns the following commission rates: 3.00 percent for oil changes, 5.00 percent for tune - ups, and 6.25 percent on auto parts sales. he is guaranteed a minimum salary of $2,450.00 per month. last month he brought in $2,500.00 in oil changes, $4,500.00 in tune - ups, and sold $28,200.00 in parts. what is his gross pay for the month?\na. $2,112.50 b. $2,450.00 c. $2,200.00 d. $5,016.00
Answer
Explanation:
Step1: Calculate commissions for each category for Richard Klein
Commission from oil - changes: $2500\times0.03 = 75$ Commission from tune - ups: $4500\times0.05=225$ Commission from auto parts sales: $28200\times0.0625 = 1762.5$ Total commission: $75 + 225+1762.5=2062.5$
Step2: Compare total commission with minimum salary
Minimum salary = $2450$ Since $2062.5<2450$
Answer:
B. $$2,450.00$
For the other parts: 1.
Explanation:
Step1: Calculate commission for Cosmetics
Commission = Total Sales $\times$ Commission Rate $2500\times0.12 = 300$
Answer:
$$300$
Explanation:
Step1: Calculate commission for Hardware
Commission = Total Sales $\times$ Commission Rate $5800\times0.055 = 319$
Answer:
$$319$
Explanation:
Step1: Calculate commission for Shoes
Commission = Total Sales $\times$ Commission Rate $9750\times0.0375=365.625$
Answer:
$$365.625$
Explanation:
Step1: Calculate commission for B. Adams
Commission = Total Sales $\times$ Commission Rate $5200\times0.0845 = 440.4$
Step2: Compare commission with minimum salary
Minimum salary = $500$ Since $440.4<500$
Answer:
Commission: $$440.4$, Gross Pay: $$500$
Explanation:
Step1: Calculate commission for K. Brown
Commission = Total Sales $\times$ Commission Rate $12000\times0.06825 = 819$
Step2: Compare commission with minimum salary
Minimum salary = $775$ Since $819>775$
Answer:
Commission: $$819$, Gross Pay: $$819$
Explanation:
Step1: Calculate commission for C. Sumner
Commission = Total Sales $\times$ Commission Rate $9500\times0.135 = 1282.5$
Step2: Compare commission with minimum salary
Minimum salary = $1150$ Since $1282.5>1150$
Answer:
Commission: $$1282.5$, Gross Pay: $$1282.5$