salesman earns a base salary of $14,000 per year; also receives 7% commission on his sales. if his total sales exceed $500,000 for the year a bonus of $5000 is paid in December. last year he reported an income of $55,771 to the IRS. what were his total sales?
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First, figure out whether he got the bonus or not. The border case is for $500 000 in sales. 7% of $500 000 is $35 000. Adding on his base salary gets $49 000. He clearly made more that that, so he did get a $5000 bonus.
Letting x be his total sales, gets the equation.
14000 + 0.07x + 5000 = 55771
I assume you're good from here.
Letting x be his total sales, gets the equation.
14000 + 0.07x + 5000 = 55771
I assume you're good from here.