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Question

Difficulty: EasyWages, Salaries, and Commissions

A freelance illustrator earns a fixed weekly retainer of $400\$400 and receives a 10%10\% commission on any artwork sold in galleries. If the illustrator sells $1,500\$1,500 worth of artwork during the week, what is their total gross pay for that week?

  1. A
    $150\$150
  2. $550\$550Answer
  3. C
    $1,650\$1,650
  4. D
    $1,900\$1,900

Answer

The total gross pay is $550\$550.
To find the total gross pay, first calculate 10% of the $1,500\$1,500 in sales, which is $150\$150. Then, add this commission amount to the $400\$400 fixed retainer, resulting in a total gross pay of $550\$550.

Step-by-Step Solution

1
Calculate the commission earned from the artwork sales.
$1,500×0.10=$150\$1,500 \times 0.10 = \$150
The illustrator earns a 10% commission on the total value of artwork sold.
2
Add the earned commission to the fixed weekly retainer to find the total gross pay.
$400+$150=$550\$400 + \$150 = \$550
The total gross pay is the sum of the fixed retainer and any additional commission.

Key Concept

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

Wages, Salaries, and Commissions

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