A car salesperson is paid a base salary of $35,000 a year plus 8% of sales. What are the sales needed to have an annual income greater than $65,000?

1 Answer
Feb 12, 2018

See a solution process below:

Explanation:

The formula for calculating the salary of a person with a base salary and commission is:

#t = b + (s xx c)#

Where,

#t# is the total salary of the person: $65,000 for this problem.

#b# is the base salary: $35,000 for this problem.

#s# is the total sales for the year: what we are solving for in this problem.

#c# is the commission rate: 8% for this problem. "Percent" or "%" means "out of 100" or "per 100", Therefore 8% can be written as #8/100#.

We can substitute and solve for #s# as:

#$65000 = $35000 + (s xx 8/100)#

#$65000 = $35000 + 8/100s#

#$65000 - color(red)($35000) = $35000 - color(red)($35000) + 8/100s#

#$30000 = 0 + 8/100s#

#$30000 = 8/100s#

#color(red)(100)/color(blue)(8) xx $30000 = color(red)(100)/color(blue)(8) xx 8/100s#

#($3000000)/color(blue)(8) = cancel(color(red)(100))/cancel(color(blue)(8)) xx color(blue)(cancel(color(black)(8)))/color(red)(cancel(color(black)(100)))s#

#$375000 = s#

#s = $375000#

The salesperson would need $375,000 in sales to achieve a total salary of $375,000