Friday, 23 March 2018

Silvio's gross earnings for last week were $328.54. His remuneration consists of a base salary of $280 plus a commission of 6% on net sales exceeding...

To determine
Silvio's gross sales, first subtract his base salary from his gross earnings to determine the
amount of earnings Silvio made on commission alone:


`328.54-200=128.54`

Silvio's earnings from commission was $128.54.
This represents 6% of Silvio's sales beyond $5,000. To determine 100% of Silvio's sales beyond
$5,000, set up a proportion,

`128/.06` `=x/1`


cross-multiply,

`128=.06x`

and, finally,
divide,

`128/.06=x`

`2133.33=x`

We have
rounded the answer to two decimal points because we are dealing with dollar amounts. Silvio's
net sales beyond $5,000 was $2,133.33. Add these two numbers together to determine Silvio's
total net sales.

`2133.33+5000=7133.33`

Silvio's total net
sales are $7,133.33. To figure out Silvio's total gross sales, add this number to his sales
returns and allowances. This number represents the amount of money Silvio made that was later
returned to customers, so it counts towards his gross sales, but not towards his net sales, and
he does not make commission on it.

`7133.33+136=7269.33`


Silvio's total gross sales were $7,289.33.

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