A salesman is paid a basic salary of Sh 7100. He also gets 6% commission once he has sold goods for over Sh 70000. How much commission did he earn in a month in which he sold goods worth Sh 560000?
Question
A salesman is paid a basic salary of Sh 7100. He also gets 6% commission once he has sold goods for over Sh 70000. How much commission did he earn in a month in which he sold goods worth Sh 560000?
Solution
Step 1: Identify the amount of sales that are eligible for commission. The salesman gets a commission on the amount he sold over Sh 70000. So, subtract Sh 70000 from the total sales of Sh 560000.
560000 - 70000 = 490000
Step 2: Calculate the commission. The salesman gets a 6% commission on the eligible sales. So, multiply the eligible sales by 6%.
490000 * 0.06 = 29400
So, the salesman earned a commission of Sh 29400 in that month.
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