A-1 Chemical Supply pays Kim Taylor a $1320 monthly salary plus a 4% commission on merchandise she sells each month. Assume Kim's sales were $87,300 for last month.Calculate the following amounts:1. Amount of Commission: $2. Gross Pay:
Question
A-1 Chemical Supply pays Kim Taylor a 87,300 for last month.Calculate the following amounts:1. Amount of Commission: $2. Gross Pay:
Solution
- Amount of Commission: To calculate the commission, you need to multiply Kim's sales by the commission rate.
Kim's sales = $87,300 Commission rate = 4% = 0.04
So, the commission is calculated as follows: Commission = Sales * Commission rate Commission = 3,492
- Gross Pay: The gross pay is the sum of the monthly salary and the commission.
Monthly salary = 3,492
So, the gross pay is calculated as follows: Gross Pay = Monthly salary + Commission Gross Pay = 3,492 Gross Pay = $4,812
So, Kim's commission for last month was 4,812.
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