Green’s Sport Shop offers its salespeople an annual salary of $10,000 plus a 6% commission on all sales above $20,000. Every employee receives a Christmas bonus of $500. What are Mr. Cahn’s total earnings in a year in which his sales amounted to $160,000?

(A) $18,900
(B) $18,400
(C) $19,600
(D) $20,100

Respuesta :

Mr. Cahn’s total earnings in a year is $18,900.

What is the total earnings?

The total earnings is a function of the annual salary, commission and Christmas bonus.

Total earnings = annual salary + commission + Christmas bonus

Commission = 6% x (160,000 - 20,000)

6% x $140,000

0.06 x 140,000 =  $8,400

Total earnings =  $8,400 + 10,000 + $500 = $18,900

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