An insurance agent receives a salary of 550 cedis and a 2% commission on all sales over 8500 cedis .If his total income in a particular month was income 1225 cedis what was the amount of his sales for that month
Well, it seems like this insurance agent has a pretty interesting income structure! Let's do some math and figure out the amount of his sales for that month.
First, let's calculate the commission he earned on the sales. He received a 2% commission on all sales over 8500 cedis, so we can write it as:
Commission = 0.02 * (Amount of Sales - 8500)
Now, let's calculate the commission he earned. We know that his total income for the month was 1225 cedis, and this includes both his salary and commission, so we can write it as:
Total Income = 550 + Commission
Since we want to find the amount of his sales for that month, let's rearrange the equation to solve for the amount of sales:
Amount of Sales = (Total Income - Salary) / 0.02 + 8500
Substituting the given values into the equation:
Amount of Sales = (1225 - 550) / 0.02 + 8500
Amount of Sales = 675 / 0.02 + 8500
Amount of Sales = 33750 + 8500
Amount of Sales = 42250 cedis
So, the amount of his sales for that month was 42250 cedis. I hope that brings a smile to your face!
Let's assume the amount of his sales for the month is x cedis.
The commission on all sales above 8500 cedis is 2%.
Therefore, the commission earned on sales above 8500 cedis is 0.02(x - 8500) cedis.
So, the total income earned by the agent is the sum of his salary and the commission.
1225 cedis = 550 cedis + 0.02(x - 8500) cedis.
To solve for x, we can simplify the equation as follows:
1225 cedis - 550 cedis = 0.02(x - 8500) cedis.
675 cedis = 0.02(x - 8500) cedis.
To remove the decimal, we can multiply both sides of the equation by 100:
675 cedis * 100 = 0.02(x - 8500) cedis * 100.
67500 cedis = 2(x - 8500) cedis.
Now, divide both sides of the equation by 2:
(67500 cedis) / 2 = (2(x - 8500) cedis) / 2.
33750 cedis = x - 8500 cedis.
Add 8500 cedis to both sides of the equation:
33750 cedis + 8500 cedis = x - 8500 cedis + 8500 cedis.
42250 cedis = x.
Therefore, the amount of his sales for that month is 42250 cedis.
To find out the amount of sales for that month, we need to understand the components of the total income.
Let's start by calculating the commission earned by the insurance agent. The commission is 2% on all sales over 8500 cedis. Therefore, we'll subtract the base sales amount (8500 cedis) from the total income to determine the commissionable sales:
Commissionable sales = Total income - Base sales amount
= 1225 cedis - 550 cedis
= 675 cedis
Next, we'll calculate the commission earned by multiplying the commissionable sales by the commission rate of 2%:
Commission = Commissionable sales * Commission rate
= 675 cedis * 2%
= 675 cedis * (2/100)
= 13.5 cedis
Now, let's determine the actual sales amount by adding the base sales amount (8500 cedis) to the commissionable sales:
Sales amount = Base sales amount + Commissionable sales
= 8500 cedis + 675 cedis
= 9175 cedis
Therefore, the amount of sales for that month was 9175 cedis.
1225 = 550 + 0.02 * (s-8500)
675 = 0.02 s - 170
845 = 0.02 s
s = 42,250