Lisa has a guaranteed minimum salary of $1600 per month, or 6.5% of her total monthly sales (as commission), whichever is higher.
Last month, her total sales were $23,000. What was her gross pay?
Group of answer choices
$1,600
$1,495
$14,950
$3,095
To calculate Lisa's gross pay, we first need to find out how much she earns in commission.
Her commission is 6.5% of her total monthly sales, which in this case is $23,000.
So, her commission is 0.065 * $23,000 = $1,495.
However, her guaranteed minimum salary is $1,600 per month.
Since the commission is lower than the minimum salary, Lisa's gross pay is $1,600.
Therefore, the correct answer is $1,600.
To calculate Lisa's gross pay, we need to compare her guaranteed minimum salary of $1600 with her commission based on her total monthly sales.
To calculate the commission, we need to find 6.5% of her total sales ($23,000).
6.5% of $23,000 can be calculated by multiplying $23,000 by 6.5% (or 0.065):
Commission = $23,000 * 0.065
Commission = $1,495 (rounded to the nearest dollar)
Now we compare the commission with the guaranteed minimum salary:
Gross Pay = Maximum (guaranteed minimum salary, commission)
Gross Pay = Maximum ($1,600, $1,495)
Since the commission of $1,495 is lower than the guaranteed minimum salary of $1,600, Lisa's gross pay for last month will be $1,600.
Therefore, the correct answer is: $1,600.
To calculate Lisa's gross pay, we need to compare her guaranteed minimum salary of $1600 with 6.5% of her total monthly sales.
First, let's calculate 6.5% of $23,000.
6.5% of $23,000 = (6.5/100) * $23,000 = $1495
Since $1600 is higher than $1495, Lisa's gross pay for the month is $1600.
Therefore, the correct answer is $1,600.