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

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

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 commission from oil - changes

Commission from oil - changes = 3% of $2500=\frac{3}{100}\times2500 = 75$

Step2: Calculate commission from tune - ups

Commission from tune - ups = 5% of $4500=\frac{5}{100}\times4500 = 225$

Step3: Calculate commission from parts sales

Commission from parts sales = 6.25% of $28200=\frac{6.25}{100}\times28200= 1762.5$

Step4: Calculate total commission

Total commission = 75 + 225+1762.5 = 2062.5$

Step5: Calculate gross pay

Gross pay = Minimum salary+Total commission = 2450+2062.5 - 2450=2450$ (since the minimum salary of $2450$ is already guaranteed and the total commission calculation is just for illustration, but the pay is at least the minimum salary)

Answer:

B. $2,450.00$