A salesman is paid a basic salary of Sh 6800. He also gets 2% commission once he has sold goods for over Sh 40000. How much commission did he earn in a month in which he sold goods worth Sh 225000?
Question
A salesman is paid a basic salary of Sh 6800. He also gets 2% commission once he has sold goods for over Sh 40000. How much commission did he earn in a month in which he sold goods worth Sh 225000?
Solution
Step 1: Determine the amount of sales that are eligible for commission. The salesman only gets a commission for sales over Sh 40000. So, subtract Sh 40000 from the total sales of Sh 225000. This gives you Sh 185000.
Step 2: Calculate the commission. The salesman gets a 2% commission on the eligible sales. So, multiply Sh 185000 by 2%. This gives you Sh 3700.
So, the salesman earned a commission of Sh 3700 in that month.
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