Goode Manufacturing pays Frank Brooks a $1950 monthly salary plus a 6% commission on merchandise he sells each month. Assume Frank's sales were $98,500 for last month.Calculate the following amounts:1. Amount of Commission: $2. Gross Pay:
Question
Goode Manufacturing pays Frank Brooks a 98,500 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 Frank's sales by his commission rate.
Frank's sales = $98,500 Commission rate = 6% = 0.06
So, the commission is calculated as follows: Commission = Sales * Commission rate Commission = 5,910
- Gross Pay: The gross pay is the sum of the monthly salary and the commission.
Monthly salary = 5910
So, the gross pay is calculated as follows: Gross Pay = Monthly salary + Commission Gross Pay = 5910 Gross Pay = $7860
So, Frank's commission for last month was 7860.
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