Seth is paid on a graduated commission scale. He earns 10% commission on is first $1,000 in sales. He earns 15% commission on all sales over $1,000.
Last month, his total sales were $2,500. What was his total commission?
Group of answer choices
$225
$325
To calculate Seth's commission, we need to determine the amount of sales that fall under the first $1,000 and the amount of sales that fall above $1,000.
Amount of sales under $1,000: $1,000 * 10% = $100
Amount of sales above $1,000: $2,500 - $1,000 = $1,500
Commission on amount above $1,000: $1,500 * 15% = $225
Total commission = Commission on amount under $1,000 + Commission on amount above $1,000 = $100 + $225 = $325
Therefore, Seth's total commission was $325.
To find Seth's total commission, we need to calculate the commission he earned on the first $1,000 in sales and the commission he earned on the remaining $1,500 in sales.
First, we calculate the commission earned on the first $1,000 in sales:
Commission = 10% of $1,000 = $100
Next, we calculate the commission earned on the remaining $1,500 in sales:
Commission = 15% of $1,500 = $225
Finally, we add the two commissions together to find Seth's total commission:
Total Commission = $100 + $225 = $325
Therefore, Seth's total commission was $325.
To calculate Seth's total commission, we need to determine the commission earned on the first $1,000 in sales and the commission earned on the remaining $1,500 in sales.
For the first $1,000 in sales, Seth earns a 10% commission.
Commission on the first $1,000 = $1,000 × 10% = $100
For the remaining $1,500 in sales, Seth earns a 15% commission.
Commission on the remaining $1,500 = $1,500 × 15% = $225
Therefore, Seth's total commission is $100 + $225 = $325.
Hence, the correct answer is $325.