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Question

Difficulty: EasyWages, Salaries, and Commissions

A car rental agent earns a base weekly salary of 500.Inaddition,theyearna5500. In addition, they earn a 5% commission on any rental upgrades they sell. If the agent sells 800 worth of upgrades in one week, what is their total weekly pay?

  1. A
    $40
  2. B
    $900
  3. $540Answer
  4. D
    $1,300

Answer

$540
The total weekly pay is found by adding the base salary and the commission. The commission is 5% of the 800inupgradesales,whichequals800 in upgrade sales, which equals 40. Adding the 40commissiontothe40 commission to the 500 base salary results in a total of $540.

Step-by-Step Solution

1
Calculate the commission earned from the upgrade sales.
$800×0.05=$40\$800 \times 0.05 = \$40
The agent earns 5% on all rental upgrades sold.
2
Add the commission to the base salary to find the total weekly pay.
$500+$40=$540\$500 + \$40 = \$540
Total pay is the sum of the guaranteed base salary and the variable commission.

Key Concept

Calculating total earnings by adding a percentage-based commission to a fixed base salary.
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Topics

Wages, Salaries, and Commissions

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