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Mr. gonzalez earns his living as a salary plus commission employee. his annual salary is $18,000. he makes 4% commission on all of his sales. mr. gonzalez wants to earn $60,000 this year. if his earnings are divided evenly throughout the year, how much in monthly sales would mr. gonzalez need to have? a. $37,500 b. $87,500 c. $100,000 d. $125,000 please select the best answer from the choices provided a b c d

Sagot :

In monthly sales would mr. gonzalez need to have $100000

Mr. Gonzalez earns his living as a salary plus commission employee, then his annual earnings can be represented by

What is the formula for monthly earning?

Monthly earnings=a+bx

Where a =his annual salary (fixed),

b = the percentage of sales commission and

X =represents the volume of sales made each year.

Therefore When  Mr. Gonzalez annual salary is $18,000 and makes a commission of 4%, his annual sales that will enable him earn an annual salary of $60,000 will be equal to

$60000 = $18000 + 0.04X

$60000 - $18000 = 0.04X

$48000 = 0.04X

0.04X = $1200000

X = $48000/0.04=12000000

X=$12000000

Therefore, his monthly sales is given by his  earnings divided evenly each month is equal to

$1200000/12=$100000

So the option c is correct.

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