Sara is paid on a graduated commission scale. She earns 6% commission on her first $1,500 in sales. She earns 8% commission on her next $2,000 in sales. She earns 10% commission on all sales over $3,500.
Last month, her total sales were $3,900. What was her total commission?
Group of answer choices
$290
$312
$40
$390
First, we need to find the commission earned on the first $1,500 in sales. Since she earns 6% commission on this amount, her commission would be 6% of $1,500, which is 0.06 * $1,500 = $<<0.06*1500=90>>90.
Next, we need to find the commission earned on the next $2,000 in sales. Since she earns 8% commission on this amount, her commission would be 8% of $2,000, which is 0.08 * $2,000 = $<<0.08*2000=160>>160.
Finally, we need to find the commission earned on the remaining $400 in sales. Since she earns 10% commission on this amount, her commission would be 10% of $400, which is 0.10 * $400 = $<<0.10*400=40>>40.
Therefore, her total commission would be $90 + $160 + $40 = $<<90+160+40=290>>290.
The correct answer is $290.
To calculate Sara's total commission, we need to calculate the commission earned at each commission rate and then add them together.
First, let's calculate the commission earned on the first $1,500 at a rate of 6%:
Commission = sales * commission rate
Commission = $1,500 * 0.06
Commission = $90
Next, let's calculate the commission earned on the next $2,000 at a rate of 8%:
Commission = sales * commission rate
Commission = $2,000 * 0.08
Commission = $160
Finally, let's calculate the commission earned on the remaining sales over $3,500 at a rate of 10%:
Commission = sales * commission rate
Commission = ($3,900 - $1,500 - $2,000) * 0.10
Commission = $400 * 0.10
Commission = $40
Now, let's add up all the commissions to get the total commission:
Total commission = $90 + $160 + $40
Total commission = $290
Therefore, Sara's total commission was $290.
To determine Sara's total commission, we need to calculate the commission amount for each tier of sales separately and then add them up.
1. Calculate the commission for the first tier: 6% of $1,500.
Commission for the first tier = 6/100 * $1,500 = $90.
2. Calculate the commission for the second tier: 8% of $2,000.
Commission for the second tier = 8/100 * $2,000 = $160.
3. Calculate the sales amount in the third tier: Total sales - (sales in first tier + sales in the second tier).
Sales in the third tier = $3,900 - ($1,500 + $2,000) = $400.
4. Calculate the commission for the third tier: 10% of the sales in the third tier.
Commission for the third tier = 10/100 * $400 = $40.
5. Add the commission amounts for each tier to find the total commission:
Total Commission = Commission for the first tier + Commission for the second tier + Commission for the third tier
= $90 + $160 + $40
= $290.
Therefore, Sara's total commission for last month's sales of $3,900 is $290, which corresponds to the option: $290.