Question

1-6 calculating commissions
if you work in the retail business, you might earn a commission. with a commission, you are paid according to how much you actually sell. you might be paid a commission only, or you might be guaranteed a minimum salary. in that case, your commission for the pay period is compared to your minimum salary. your gross pay is the greater of the two.
commission = total sales × commission rate
gross pay = salary or commission (whichever is greater)
example
find the gross pay.
sandra powers works in a clothing boutique. she is guaranteed a minimum weekly salary of $320, or 6.5 percent of her sales, whichever is greater. if she sold $5,000 worth of clothing and accessories last week, what is her gross pay?

1. find her commission.

$5,000.00×0.065 = $325 commission

1. find her gross pay.

salary = $320
$325 > $320.
gross pay is $325.
practice
find the commission.
sales position total sales × commission rate = commission

1. cosmetics $2,500 × 12% =
2. hardware 5,800 × 5.5% =
3. shoes 9,750 × 3.25% =

find the commission and gross pay.
salesperson minimum weekly salary total weekly sales × commission rate = weekly commission gross pay

1. b. adams $500 $5,200 × 8.45% =
2. k. brown 775 12,000 × 6.825% =
3. c. sumner 1,150 9,500 × 13.5% =
4. standardized test practice richard klein works as an auto mechanic and earns the following commission rates: 3.00 percent for oil changes, 5.00 percent for tune - ups, and 6.25 percent on auto parts sales. he is guaranteed a minimum salary of $2,450.00 per month. last month he brought in $2,500.00 in oil changes, $4,500.00 in tune - ups, and sold $28,200.00 in parts. what is his gross pay for the month?

a. $2,112.50 b. $2,450.00 c. $2,200.00 d. $5,016.00

Explanation:

Step1: Calculate commissions for each category for Richard Klein

Commission from oil - changes: $2500\times0.03 = 75$
Commission from tune - ups: $4500\times0.05=225$
Commission from auto parts sales: $28200\times0.0625 = 1762.5$
Total commission: $75 + 225+1762.5=2062.5$

Step2: Compare total commission with minimum salary

Minimum salary = $2450$
Since $2062.5<2450$

Step1: Calculate commission for Cosmetics

Commission = Total Sales $\times$ Commission Rate
$2500\times0.12 = 300$

Step1: Calculate commission for Hardware

Commission = Total Sales $\times$ Commission Rate
$5800\times0.055 = 319$

Step1: Calculate commission for Shoes

Commission = Total Sales $\times$ Commission Rate
$9750\times0.0375=365.625$

Answer:

B. $\$2,450.00$

For the other parts:
1.