Please help: Sally is paid 6% on 1st $750K of monthly sales, 8% after that

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Gigi18

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Hi! Can somebody help me solve this problem below

Sally is an equipment salesagent. She is paid 6% on her first $750,000 of monthly sales and 8% on all monthly sales over $750,000. Her sales were $725,000 in January and $910,000 in Febuary. What was her total commision for the two months?
 
Help me solve some commission problems:)

Hi! Can somebody help me solve this problem below

Sally is an equipment salesagent. She is paid 6% on her first $750,000 of monthly sales and 8% on all monthly sales over $750,000. Her sales were $725,000 in January and $910,000 in Febuary. What was her total commision for the two months?

I tried my best but I still can't arrive at a correct answer. Here's my solution

(0.06 x 725,000) + (0.06 x 910,000)+[(910,000+725,000)x.08] = 228,900

Did I get it right?
 
Gigi18 said:
Hi! Can somebody help me solve this problem below

Sally is an equipment salesagent. She is paid 6% on her first $750,000 of monthly sales and 8% on all monthly sales over $750,000. Her sales were $725,000 in January and $910,000 in Febuary. What was her total commision for the two months?

I tried my best but I still can't arrive at a correct answer. Here's my solution

(0.06 x 725,000) + (0.06 x 910,000)+[(910,000+725,000)x.08] = 228,900

Did I get it right?
Click to expand...

Thanks for showing your work, which we would have had to ask for otherwise.

You are paying her far too much. She is not paid 6% of the entire $910,000, PLUS 8% of the entire two months worth again.

You need to break up the $910,000 into two parts: the first $750,000, and the amount over $750,000. Then find the commission on each part.

Give it another try. If this is for a course, were you given any examples of this kind of calculation? I would definitely expect that -- though some textbooks I've seen don't present it very clearly.
 
Gigi18 said:
Hi! Can somebody help me solve this problem below

Sally is an equipment salesagent. She is paid 6% on her first $750,000 of monthly sales and 8% on all monthly sales over $750,000. Her sales were $725,000 in January and $910,000 in Febuary. What was her total commision for the two months?
Click to expand...
In January her sales were less than $750,000 so her commission is .06 times 725,000. In February she had 910,000- 750,000= 16,000 monthly sales above $750,000 so her commission for February is .06 times 750,000 plus .08 times 16,000. 0f course, her "total commission for the two months" is the sum of the two monthly commissions.
 
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