Question

Paul Harris, a salesperson, earned $1,092.50 in commissions on $9,500 of products he sold to clients. What is his rate of commission?12.5%11.5%10.5%9.5%None of these choices are correct.

Answer 1

To obtain Paul Harris' rate of commission, the following steps are necessary:

Step 1: Recall the formula for rate of commission, as below:

$\text{rate of commission = }\frac{commission}{\text{total revenue}}\times100$

Step 2: Apply the formula as follows:

commission = $1,092.50

total revenue = $9,500

Thus:

$\begin{gathered} \text{rate of commission = }\frac{commission}{\text{total revenue}}\times100 \\ \Rightarrow\text{rate of commission = }\frac{1092.50}{9500}\times100 \\ \Rightarrow\text{rate of commission = 0.115}\times100 \\ \Rightarrow\text{rate of commission = }11.5\text{ percent} \end{gathered}$

Therefore, Paul Harris' rate of commission is 11.5 % (option B)