Eastern Aviation Equipment pays John Young a $2960 monthly salary plus a 4% commission on merchandise he sells each month. Assume John's sales were $84,200 for last month.Calculate the following amounts:1. Amount of Commission: $2. Gross Pay:
Question
Eastern Aviation Equipment pays John Young a 84,200 for last month.Calculate the following amounts:1. Amount of Commission: $2. Gross Pay:
Solution
- Amount of Commission: To calculate the commission, we need to multiply John's sales by the commission rate.
John's sales = $84,200 Commission rate = 4% = 0.04
So, the commission is calculated as follows: Commission = Sales * Commission rate Commission = 3368
- Gross Pay: The gross pay is the sum of the monthly salary and the commission.
Monthly salary = 3368
So, the gross pay is calculated as follows: Gross Pay = Monthly salary + Commission Gross Pay = 3368 Gross Pay = $6328
So, John's commission for last month was 6328.
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