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Neil is paid a weekly retainer of $400\$400 and 13%13\% commission on sales in excess of $5000\$5000. What is his pay in a week when he has sales of $8350\$8350?\newlineA $1085.50\$1085.50\newlineB $435.50\$435.50\newlineC $835.50\$835.50\newlineD $1685.50\$1685.50

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Full solution

Q. Neil is paid a weekly retainer of $400\$400 and 13%13\% commission on sales in excess of $5000\$5000. What is his pay in a week when he has sales of $8350\$8350?\newlineA $1085.50\$1085.50\newlineB $435.50\$435.50\newlineC $835.50\$835.50\newlineD $1685.50\$1685.50
  1. Calculate Sales Eligible: Calculate the amount of sales that are eligible for commission. Neil gets a commission on sales in excess of $5000\$5000. So, we need to subtract $5000\$5000 from his total sales to find the amount that will be commissioned. $8350−$5000=$3350\$8350 - \$5000 = \$3350
  2. Calculate Commission Amount: Calculate the commission on the eligible sales amount.\newlineNeil earns a 13%13\% commission on the amount over $5000\$5000. So, we calculate 13%13\% of $3350\$3350.\newlineCommission = 13100×$3350=$435.50\frac{13}{100} \times \$3350 = \$435.50
  3. Calculate Total Pay: Calculate Neil's total pay for the week.\newlineNeil's total pay is the sum of his weekly retainer and the commission earned.\newlineTotal pay = Weekly retainer + Commission\newlineTotal pay = $400\$400 + $435.50\$435.50 = $835.50\$835.50

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