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Dave is a salesperson in a marketing firm. He is paid a base salary of $950/week plus a graduated commission of 3.5% on sales up to $3000 and 6.5% on sales over $3000. What were his total earnings if his sales last week were $7606?

Question

Dave is a salesperson in a marketing firm. He is paid a base salary of 950/weekplusagraduatedcommissionof3.5950/week plus a graduated commission of 3.5% on sales up to 3000 and 6.5% on sales over 3000.Whatwerehistotalearningsifhissaleslastweekwere3000. What were his total earnings if his sales last week were 7606?

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Solution

To calculate Dave's total earnings, we need to consider both his base salary and his commission from sales.

Step 1: Calculate the commission from sales up to 3000Daveearnsacommissionof3.53000 Dave earns a commission of 3.5% on the first 3000 of his sales. So, we calculate this as follows: 3000 * 3.5/100 = $105

Step 2: Calculate the commission from sales over 3000Davessaleswere3000 Dave's sales were 7606, which is 4606overthe4606 over the 3000 threshold. He earns a higher commission of 6.5% on this amount. So, we calculate this as follows: 4606 * 6.5/100 = $299.39

Step 3: Add up all his earnings Dave's total earnings are the sum of his base salary, his commission on the first 3000ofsales,andhiscommissionontheremainingsales.So,wecalculatethisasfollows:950(basesalary)+105(firstcommission)+299.39(secondcommission)=3000 of sales, and his commission on the remaining sales. So, we calculate this as follows: 950 (base salary) + 105 (first commission) + 299.39 (second commission) = 1354.39

So, Dave's total earnings last week were $1354.39.

This problem has been solved

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