A licensing sales agent earns a monthly base salary of ₱15,000 plus a 5% commission on all sales exceeding ₱100,000. If her total gross earnings for the month are ₱27,500, what were her total sales?
Answer and explanation
Correct answer: A. ₱350,000
- Step 1: Commission earned = Total earnings - Base salary = ₱27,500 - ₱15,000 = ₱12,500. Step 2. Sales subject to commission = ₱12,500 / 0.05 = ₱250,000. Step 3. Total sales = Threshold + Commission sales = ₱100,000 + ₱250,000 = ₱350,000. Answer: ₱350,000, finding commission sales of ₱250,000 (₱12,500 / 0.05) and adding the ₱100,000 threshold. Why not the others: ₱250,000 forgets to add the initial ₱100,000 baseline.
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