Financial Maths, STD2 EQ-Bank 37

Trust Us Realty has three salespeople, Ralph, Ritchie, and Fonzi.

Their June monthly wages include a base wage and commission earned, which is modelled in the spreadsheet below.

Write down the formula that was used in cell C9, using appropriate grid references. (1 mark)

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Calculate Fonzi's total pay for the month of June. (2 marks)

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Ralph's total pay for June is $5850. Determine Ralph's total sales for the month. (2 marks)

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Show Answers Only

a. $=0.01^* \text{B9}$

b. $\$ 20\,200$

c. $\$ 385\,000$

Show Worked Solution

a. $=0.01^* \text{B9}$

b. $\text{Fonzi’s Commission:}$

$\text{Sales}\ \$0-\$500\,000=0.01 \times 500\,000=\$ 5000$

$\text{Sales over} \ \$500\, 000=(2\,150\,000-500\,000) \times 0.008=\$13\,200$

$\text{Total June wages}=5000+13\,200+2000=\$ 20\,200$

c. $\text{Ralph’s sales commission}\ =5850-2000=\$3850$

$\text {Since Ralph earned} \ \$3850 \ \text{in commission:}$

$\text{Sales} \times 0.01$	$=3850$
$\text{Sales}$	$=\dfrac{3850}{0.01}=\$ 385\,000$

\(\text{Sales} \times 0.01\)	\(=3850\)
\(\text{Sales}\)	\(=\dfrac{3850}{0.01}=\$ 385\,000\)