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Difficulty: EasyWages, Salaries, and Commissions

A property leasing agent earns a fixed weekly base salary of $800\$800, plus a 5%5\% commission on the total dollar value of all leases signed that week. If the agent signed leases totaling $3,000\$3,000 last week, what was their total gross pay for the week?

  1. A
    $150\$150
  2. B
    $815\$815
  3. $950\$950Answer
  4. D
    $840\$840

Answer

The agent's total gross pay is $950\$950.
The total gross pay is the sum of the base salary and the commission. The commission is calculated as 5%5\% of the $3,000\$3,000 lease value, which is $150\$150. Adding this to the $800\$800 base salary results in a total gross pay of $950\$950.

Step-by-Step Solution

1
Calculate the commission amount by finding 5%5\% of the total lease value.
0.05×$3,000=$1500.05 \times \$3,000 = \$150
The commission is earned on the total value of the leases signed.
2
Add the calculated commission to the fixed base salary to find the total gross pay.
$800+$150=$950\$800 + \$150 = \$950
Total pay is the sum of the guaranteed base salary and any earned commission.

Key Concept

Calculating total earnings by combining a fixed base salary with a percentage-based commission.
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Topics

Wages, Salaries, and Commissions

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