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Difficulty: EasyWages, Salaries, and Commissions

A furniture store salesperson earns a weekly base salary of $500\$500, plus a 4%4\% commission on all sales. If the salesperson sells $3,000\$3,000 worth of furniture in a week, what is their total gross pay for that week?

  1. A
    $120\$120
  2. B
    $520\$520
  3. $620\$620Answer
  4. D
    $1,700\$1,700

Answer

$620\$620
To find the total gross pay, you must first determine the commission earned by multiplying the total sales by the commission rate. 4%4\% of $3,000\$3,000 is $120\$120. Next, add this commission to the base salary. $500+$120=$620\$500 + \$120 = \$620. Therefore, the salesperson's total gross pay is $620\$620.

Step-by-Step Solution

1
Calculate the commission earned from the sales.
$3,000×0.04=$120\$3,000 \times 0.04 = \$120
The salesperson earns a 4% commission on their total sales volume.
2
Add the commission to the base salary to find the total gross pay.
$500+$120=$620\$500 + \$120 = \$620
Total gross pay is the sum of the fixed base salary and the variable commission.

Key Concept

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

Wages, Salaries, and Commissions

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