Thomas Rendell's company pays him a straight 7% commission with a $1,570 drawing account each month. If his sales last month totaled $142,280, how much commission is owed to Thomas?
7% of 1570 = 0.07 * 1570 = $109.9
(Total sales last month / 1570) * 109.9 = ?
To calculate the commission owed to Thomas Rendell, we need to multiply his sales by the commission rate.
Step 1: Calculate the commission rate
Thomas' company pays him a straight 7% commission. This means that for every sale he makes, he earns 7% of the sale amount in commission.
To calculate the commission rate, we can use the formula:
Commission Rate = Commission Percentage / 100
Commission Rate = 7 / 100
Commission Rate = 0.07
Step 2: Calculate Thomas' commission earnings
Now that we have the commission rate, we can calculate Thomas' commission earnings by multiplying his sales by the commission rate.
Commission Amount = Sales * Commission Rate
Commission Amount = $142,280 * 0.07
Commission Amount = $9,958.60
Thomas' commission earnings for last month amount to $9,958.60.