A salesman earns a basic salary of KSh 40,000 plus a commission of 2.5% of sales. In a month his sales were KSh 800,000. What are his total earnings?
Answer and explanation
Correct answer: A. KSh 60,000
- Step 1: Commission = 2.5% x 800,000 = 20,000. Step 2. Total = 40,000 + 20,000 = KSh 60,000. Answer: KSh 60,000. Why not the others: KSh 20,000: That is the commission only. KSh 41,000: That works the commission on the salary instead of on the sales. KSh 840,000: That adds the sales to the salary.
Practise more Wages, VAT and discounts.
Free questions with an explanation for every one, and full timed KASNEB CPA Foundation Level (Kenya) mock tests.
More Wages, VAT and discounts questions
- A worker is paid KSh 200 per hour for a basic week of 40 hours. Overtime is paid at 1.5 times the normal rate. How much does she earn in a w…
- A worker is paid KSh 250 per hour for a basic week of 40 hours. Overtime is paid at 2 times the normal rate. How much does she earn in a wee…
- A worker is paid KSh 180 per hour for a basic week of 36 hours. Overtime is paid at 1.5 times the normal rate. How much does she earn in a w…
- A worker is paid KSh 300 per hour for a basic week of 40 hours. Overtime is paid at 2 times the normal rate. How much does she earn in a wee…
- A salesman earns a basic salary of KSh 30,000 plus a commission of 4% of sales. In a month his sales were KSh 500,000. What are his total ea…
- A salesman earns a basic salary of KSh 25,000 plus a commission of 5% of sales. In a month his sales were KSh 360,000. What are his total ea…