Tess’ commission is increased according to how much she sells. She receives a commission of 6% for the first $5000 and 12% on the amount over $5000. What is the total commission on sales of $12,000?
Sales of the $12000 which are over $5000 = $7000
so total commission = .06(5000) + .12(7000)
= ..
To find the total commission on sales of $12,000, we need to break it down into two parts: the commission on the first $5000 and the commission on the remaining amount.
1. Calculate the commission on the first $5000:
Commission rate on the first $5000 = 6%
Commission on the first $5000 = (6/100) * $5000
2. Calculate the commission on the remaining $7000 ($12,000 - $5000):
Commission rate on the remaining amount = 12%
Commission on the remaining amount = (12/100) * $7000
3. Calculate the total commission:
Total commission = Commission on the first $5000 + Commission on the remaining amount
Let's substitute the values into the formulas:
Commission on the first $5000 = (6/100) * $5000 = $300
Commission on the remaining amount = (12/100) * $7000 = $840
Total commission = $300 + $840 = $1140
Therefore, the total commission on sales of $12,000 is $1140.