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 3000 and 6.5% on sales over 7606?
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 3000 of his sales. So, we calculate this as follows: 3000 * 3.5/100 = $105
Step 2: Calculate the commission from sales over 7606, which is 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 1354.39
So, Dave's total earnings last week were $1354.39.
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