Carrie Jo has a guaranteed minimum salary of $2100 per month, or 8% of her total monthly sales (as commission), whichever is higher.
Last month, her total sales were $28,000. What was her gross pay?
Group of answer choices
$2,240
$2,100
$22,400
$4,340
To calculate Carrie Jo's gross pay, we need to determine if her guaranteed minimum salary of $2100 is higher than 8% of her total monthly sales.
8% of $28,000 is (8/100) * $28,000 = $2,240.
Since $2,240 is higher than $2,100, her gross pay will be $2,240. Therefore, the correct answer is:
$2,240
To find Carrie Jo's gross pay, we need to compare her minimum guaranteed salary to the commission she earned from her sales and then choose the higher amount.
First, let's calculate her commission:
Commission = 8% of Total Sales
Commission = 0.08 x $28,000
Commission = $2,240
Next, we compare her commission to her minimum guaranteed salary:
Gross Pay = Maximum(Commission, Minimum Guaranteed Salary)
Gross Pay = Maximum($2,240, $2,100)
Since the commission of $2,240 is higher than her minimum guaranteed salary of $2,100, her gross pay is $2,240.
Therefore, the correct answer is:
$2,240
To find Carrie Jo's gross pay, we need to compare her guaranteed minimum salary ($2,100) with the commission she earned based on her total monthly sales.
The commission is calculated as 8% of her total monthly sales.
Therefore, her commission is: 8% of $28,000 = 0.08 * $28,000 = $2,240.
Now, we need to compare her guaranteed minimum salary ($2,100) with the commission of $2,240.
Since the commission is higher than her guaranteed minimum salary, her gross pay will be the commission amount, which is $2,240.
Therefore, the answer is $2,240.