Spencer Morris works in the telemarketing division for a company that pays a salary of $735 per month plus a commission of 3 1/2 of all sales greater than $15,500. If he sold $4,900 last month, what was his total gross pay?
Gross Pay = 735 + 0.035(45,900-15,500)
To calculate Spencer Morris's total gross pay, we first need to calculate his commission on sales greater than $15,500, and then add it to his base salary.
1. Calculate the commission on sales above $15,500:
- Subtract $15,500 from the total sales to find the amount of sales eligible for Commission: $4,900 - $15,500 = -$10,600 (Since $4,900 is less than $15,500, the eligible sales for commission is $0)
- Calculate the commission earned on these sales: $0 * 3.5/100 = $0
2. Calculate his total gross pay:
- Add the commission to his base salary: $735 + $0 = $735
Therefore, Spencer Morris's total gross pay for last month would be $735.