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Difficulty: EasyWages, Salaries, and Commissions

A retail salesperson earns a weekly base salary of 400plusa5400 plus a 5% commission on their total sales. If the salesperson sells 2,000 worth of merchandise in a given week, what is their total gross pay for that week?

  1. A
    $100
  2. $500Answer
  3. C
    $1,400
  4. D
    $2,500

Answer

$500
The total gross pay is found by adding the base salary to the commission earned. The commission is 5% of 2,000,whichis2,000, which is 100. Adding this to the base salary of 400givesatotalof400 gives a total of 500.

Step-by-Step Solution

1
Calculate the commission earned on the total sales.
2,000×0.05=2,000 \times 0.05 = 100
The commission is a percentage of the total sales for the week.
2
Add the earned commission to the base salary to find the total gross pay.
400+400 + 100 = $500
Total gross pay equals the guaranteed base salary plus any commission earned.

Key Concept

Calculating total compensation using a base salary plus a percentage commission on sales.
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Topics

Wages, Salaries, and Commissions

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