A sales manager was given a bonus of $6,350 on the year's sales of $440,000. When answering the following questions, please make sure your final answers are in percentage form and are accurate to 2 decimal places. For example 34.56%.
a) What was the bonus as a percent of sales?
b) What was the bonus as a percent of her base salary of $110,000?
a) 6,350 / 440,000 = ?
b) 6,350 / 110,000 = ?
We'll be glad to check your answers.
To find the answers to these questions, we will use the following formulas:
a) Bonus as a percent of sales = (Bonus / Sales) * 100
b) Bonus as a percent of base salary = (Bonus / Base Salary) * 100
Let's now compute each percentage:
a) Bonus as a percent of sales:
The bonus amount is $6,350 and the sales amount is $440,000.
Using the formula:
Bonus as a percent of sales = (6,350 / 440,000) * 100
Calculating this, we get:
Bonus as a percent of sales = 1.4431818181818182 * 100
Bonus as a percent of sales = 144.32% (rounded to 2 decimal places)
Therefore, the bonus was approximately 144.32% of the sales.
b) Bonus as a percent of base salary:
The bonus amount is still $6,350, and the base salary is given as $110,000.
Using the formula:
Bonus as a percent of base salary = (6,350 / 110,000) * 100
Calculating this, we get:
Bonus as a percent of base salary = 0.05772727272727273 * 100
Bonus as a percent of base salary = 5.77% (rounded to 2 decimal places)
Therefore, the bonus was approximately 5.77% of the base salary.