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Financial Maths, STD2 EQ-Bank 35

Priya works as a sales representative and earns a base wage plus commission. A spreadsheet is used to calculate her weekly earnings.

Total weekly earnings = Base wage + Total sales \(\times\) Commission rate

A spreadsheet showing Priya's weekly earnings is shown.
  

 

  1. Write down the formula used in cell B9, using appropriate grid references.   (1 mark)

  2. In the following week, Priya earned total weekly earnings of $1437.50. Her base wage and commission rate remained unchanged. Calculate Priya's total sales for that week.   (2 marks)

  3. Priya's employer increases her commission rate to 4.2% but keeps her base wage the same. If Priya makes $22 000 in sales, calculate her new total weekly earnings.   (2 marks)

Show Answers Only

a.   \(=\text{B4}+\text{B5}^*\text{B6}/100\)

b.    \($22\, 500\)

c.    \($1574\)

Show Worked Solution

a.   \(\text{Total weekly earnings} = \text{Base wage}+\text{Total sales} \times \text{Commission rate}\)

\(\therefore\ \text{Formula:}\ =\text{B4}+\text{B5}^*\text{B6}/100\)
 

b.   \(\text{Total weekly earnings} = \text{Base wage}+\text{Total sales} \times \text{Commission rate}\)

\(\text{Let the Total sales}=S\)

\(1437.50\) \(=650+S\times \dfrac{3.5}{100}\)
\(787.50\) \(=S\times \dfrac{3.5}{100}\)
\(S\) \(=\dfrac{787.50\times 100}{3.5}=$22\,500\)

 
\(\text{The amount of Priya’s total sales was \$22 500.}\)
 

c.    \(\text{Base wage}=650\)

\(\text{Total sales}=$22\,000\)

\(\text{New commission rate}=4.2\%\)

\(\text{Total weekly earnings}\) \(=650+22\,000\times \dfrac{4.2}{100}\)
  \(=650+924=$1574\)