I am having some troubles finding the solution to this math finance question. Could someone please show me all the steps to get the the correct answer? Thank you!
Question:
Raud earns a base salary plus commission. At the end of his first month, he was paid $1440 based on monthly sales of $11 500. At the end of his second month, he made $17 900 in sales and was paid $1824. Determine his base salary and his commission.
The correct answer is: base salary- $750; commission rate- 6%. Could you please show all the steps to get to this answer? Thank you so much!
Question:
Raud earns a base salary plus commission. At the end of his first month, he was paid $1440 based on monthly sales of $11 500. At the end of his second month, he made $17 900 in sales and was paid $1824. Determine his base salary and his commission.
The correct answer is: base salary- $750; commission rate- 6%. Could you please show all the steps to get to this answer? Thank you so much!
-
Let base salary be b
and commission rate be r (in fraction)
Look at first month: total payment = base salary plus commission which is sales times rate
b + 11500r = 1440 ... (1)
Look at second month: again the same procedure
b + 17900r = 1824 ... (2)
Solve (1) and (2) by subtracting, and get: r = 0.06 (which means 6%)
and so substituting in (1) above: b = 750
and commission rate be r (in fraction)
Look at first month: total payment = base salary plus commission which is sales times rate
b + 11500r = 1440 ... (1)
Look at second month: again the same procedure
b + 17900r = 1824 ... (2)
Solve (1) and (2) by subtracting, and get: r = 0.06 (which means 6%)
and so substituting in (1) above: b = 750