7. standardized test practice richard klein works as an auto mechanic and earns the following commission…

7. 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? a. $2,112.50 b. $2,450.00 c. $2,200.00 d. $5,016.00

7. 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? a. $2,112.50 b. $2,450.00 c. $2,200.00 d. $5,016.00

Answer

Explanation:

Step1: Calculate oil - change commission

Commission from oil changes = 3.00% of $2,500.00 = 0.03×2500=$75$

Step2: Calculate tune - up commission

Commission from tune - ups = 5.00% of $4,500.00 = 0.05×4500=$225$

Step3: Calculate auto - parts sales commission

Commission from auto - parts sales = 6.25% of $28,200.00 = 0.0625×28200=$1762.5$

Step4: Calculate total commission

Total commission = 75 + 225+1762.5=$2062.5$

Step5: Calculate gross pay

Since the minimum salary is $2,450.00 and the total commission $2062.5<2450$, the gross pay is the minimum salary. So the gross pay is $$2450$.

Answer:

B. $2,450.00$