Question

Edgar Anderson earns $200 a week plus a 15% commission on all sales over $1,000. If Mr. Anderson's sales for one week are $2,500, what is his gross pay for that week.
A.575
B.525
C.350
D.425

Answer 1

Edgar Anderson earns a fixed amount of $200 per week.
He also earns a commission of 15% above any sales over $1000
In the given week the sales has amounted to $2500
So,
Amount over which Edgar Anderson will earn 15% interest = (2500 - 1000) dollars
                                                                                               = 1500 dollars.
Hence interest earned by Edgar Anderson in the week = [1500 * (15/100)] dollars
                                                                                        = (15 * 15) dollars
                                                                                       = 225 dollars
The gross pay of Edgar Anderson = (200 + 225) dollars
                                                       = 425 dollars
Hence the correct option for this question is option 'D'.