Question

Paula earns a weekly salary of $890 plus 5% commission. Last week, she sold $3250 worth of products. What was her gross pay? $1097. 00 $1052. 50 $890. 00 $162. 50.

Answer 1

The gross pay Paula earned is $1052.50. The commission she receives is calculated as a percentage of sales initiated by her.

What is a commission?

Commission refers to an incentive paid to an agent or employee on the achievement of a certain target. It is generally expressed as a percentage of sales.

The commission earned by Paula can be calculated as:

$\rm Commission = Sales \times 5\%\\\\\\rm Commission = \ 3,250 \times 5\%\\\\\rm Commission = \ 162.50$

The gross pay of Paula will be:

$\rm Gross \:pay = Salary + Commission\\\\\rm Gross \:pay = \ 890 + \ 162.50\\\\\rm Gross \:pay = \ 1052.50$

Therefore the correct option is B.

Learn more about the commission here:

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