Math Problem Statement

Madison earns $750 per week plus 3% of sales in excess of $6,500. If Madison sells $25,000 in the first week, her earnings are:

Solution

To determine Madison's earnings for the first week, we need to calculate both her base weekly salary and her commission on sales.

Step 1: Calculate the base weekly salary

Madison's base weekly salary is $750.

Step 2: Calculate the commission

Madison earns a 3% commission on sales in excess of $6,500. Her total sales for the first week are $25,000.

First, determine the amount of sales subject to the commission: Sales Subject to Commission=25,0006,500=18,500\text{Sales Subject to Commission} = 25,000 - 6,500 = 18,500

Next, calculate the commission: Commission=18,500×0.03=555\text{Commission} = 18,500 \times 0.03 = 555

Step 3: Calculate total earnings

Now, add the base salary and the commission to get the total earnings for the first week: Total Earnings=750+555=1,305\text{Total Earnings} = 750 + 555 = 1,305

So, Madison's earnings for the first week are $1,305.

Would you like more details or have any questions?

Here are five questions you might consider next:

  1. How are sales commissions typically structured in different industries?
  2. What are the tax implications of earning commissions?
  3. How can sales goals impact earnings?
  4. What are some strategies for increasing sales performance?
  5. How do base salaries compare to commission-based earnings in terms of job stability?

Tip: When calculating commissions, ensure that you subtract any non-commissionable base amount from the total sales before applying the commission percentage.

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Math Problem Analysis

Mathematical Concepts

Percentage
Commission Calculation

Formulas

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Theorems

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Suitable Grade Level

Grades 9-12