Question

Jim Tree receives a salary of $120.00 per week plus commission of 1% on sales to $3,000 and 2% on amounts over $3,000. Jim averages $9,650.00 dollars in sales per week. His expected total earnings for one week would be?

Answer 1

For the entire week Jim can expect a total of $216.50 a week. There would have been a total of $96.50 in commission plus regular sales.

Answer 2

His total earnings would be the sum of the basic salary and the commissions he gets from the sales. For a sale amounting to $9650, $3,000 of it would have 1% commission and $6650 would have 2%. Calculating,
total earning = $120 + 0.01 x $3000 + 0.02 x $6650 = $283
Thus, Jim Tree will have a pay of $283.