Question

Cody works at a car dealership where he earns $300 each week plus a commission equal to 1% of his total sales. This week his goal is to earn at least $500. What is the minimum amount of total sales Cody must have to reach his goal?

Answer 1

$20,000 = sales

Explanation:

Giving the following information:

Fixed salary= $300

Commission rate= 1% of sales

First, we need to establish the net income formula:

Net income= 300 + 0.01*sales

Now, the sales required for $500 net income:

500= 300 + 0.01sales

200/0.01 = sales

20,000 = sales

Prove:

Net income= 300 + 0.01*20,000

Net income= $500