Thomas Rendell's company pays him a straight 6% commission with a $1,350 drawing account each month. If his sales last month totaled $152,480, how much commission is owed to Thomas?
To calculate the commission owed to Thomas, we need to find 6% of his sales. Here's how you can calculate it:
Step 1: Convert the commission percentage to a decimal. Divide 6 by 100: 6/100 = 0.06.
Step 2: Multiply the sales amount by the decimal value obtained in Step 1. 0.06 * $152,480 = $9,148.80.
Since Thomas's company pays him a $1,350 drawing account each month, the commission owed to Thomas will be the amount calculated minus the drawing account.
$9,148.80 - $1,350 = $7,798.80.
Therefore, the commission owed to Thomas is $7,798.80.