Spencer Morris works in the telemarketing division for a company that pays a salary of $735
per month plus a commission of 31
2% of all sales greater than $15,500. If he sold $45,900 last
month, what was his total gross pay?
What does this mean?
"plus a commission of 31
2% of all sales"
To find Spencer Morris's total gross pay, we need to calculate both his base salary and commission.
First, let's calculate his commission. The commission is 32% of all sales greater than $15,500. As he sold $45,900 last month which is greater than $15,500, we can find his commission using the following formula:
Commission = (Total sales - Threshold sales) * Commission rate
Commission = ($45,900 - $15,500) * 0.32
Commission = $30,400 * 0.32
Commission = $9,728
So, Spencer Morris's commission is $9,728.
Next, let's calculate his base salary which is $735 per month.
Now we can find his total gross pay by adding his base salary and commission:
Total Gross Pay = Base Salary + Commission
Total Gross Pay = $735 + $9,728
Total Gross Pay = $10,463
Therefore, Spencer Morris's total gross pay is $10,463.