Answer to Question #113453 in Financial Math for Kenyon

Question

Oscar sells internet access subscriptions by telephone.He receives 12% of the first $1000 and 15% on the balance over $1000.Last month he sold $7500 worth of internet access subscriptions.What was his commission for last month

Answer 1

Comission can be calculated by multiplying percentage Oscar gets (12% or 15%) by sum of money payed for internet access:

12%* $1 000 + 15% * ($7 500 - $1 000) = $120 + 15% * $6 500 = $120 + $975 = $1 095.

Oscars's comission for last month was $1 095.