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Financial Maths, STD2 EQ-Bank 38

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.    \(\text{Base wage}=650\)

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

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

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

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.

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

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

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

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

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

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

Financial Maths, STD1 F1 2022 HSC 21

A real estate agent's commission for selling houses is 2% for the first $800 000 of the sale price and 1.5% for any amount over $800 000.

Calculate the commission earned in selling a house for $1 500 000.  (2 marks)

Show Answers Only

$26 500

Show Worked Solution
`text{Commission}` `=800\ 000 xx 2text{%} + (1\ 500\ 000-800\ 000) xx 1.5text{%}`  
  `=800\ 000 xx 0.02 + 700\ 000 xx 0.015`  
  `=16\ 000 + 10\ 500`  
  `=$26\ 500`  

Financial Maths, STD2 F1 2006 HSC 5 MC

A salesman earns $200 per week plus $40 commission for each item he sells.

How many items does he need to sell to earn a total of $2640 in two weeks?

  1. 33
  2. 56
  3. 61
  4. 66
Show Answers Only

`B`

Show Worked Solution

`text(Let items sold) = n`

`text{Wages over 2 weeks}\ (w)`

`= (2 xx 200) + 40n=400 + 40n` 

`text(Find)\ n\ text(when)\ w = 2640:`

`2640` `= 400 + 40n`
`40n` `= 2240`
`n` `= 56`

 
`=>  B`

Financial Maths, STD2 F1 2004 HSC 4 MC

A real estate agent sells a house for `$400\ 000`. From the selling price he earns `$10\ 000`
for his services.

Which term is used to describe the money he earns?

  1.   Commission
  2.   Income tax
  3.   Royalty
  4.   Superannuation
Show Answers Only

`A`

Show Worked Solution

`text(Commission)`

`=> A`

Financial Maths, STD2 F1 2008 HSC 24a

Bob is employed as a salesman. He is offered two methods of calculating his income.

\begin{array} {|l|}
\hline
\rule{0pt}{2.5ex}\text{Method 1: Commission only of 13% on all sales}\rule[-1ex]{0pt}{0pt} \\
\hline
\rule{0pt}{2.5ex}\text{Method 2: \$350 per week plus a commission of 4.5% on all sales}\rule[-1ex]{0pt}{0pt} \\
\hline
\end{array}

Bob’s research determines that the average sales total per employee per month is $15 670. 

  1. Based on his research, how much could Bob expect to earn in a year if he were to choose Method 1?   (2 marks)

  2. If Bob were to choose a method of payment based on the average sales figures, state which method he should choose in order to earn the greater income. Justify your answer with appropriate calculations.   (3 marks)

Show Answers Only
  1. `$24\ 445.20`
  2. `text(Proof)\ \ text{(See Worked Solutions)}`
Show Worked Solution

a.    `text(Method 1)`

`text(Yearly sales)= 12 xx 15\ 670= 188\ 040`

`:.\ text(Earnings)= text(13%) xx 188\ 040= $24\ 445.20`

b.    `text(Method 2)`

`text(In 1 Year, Weekly Wage)= 350 xx 52= 18\ 200`

`text(Commission)= text(4.5%) xx 188\ 040= 8461.80`

`text(Total earnings)= 18\ 200 + 8461.80= $26\ 661.80`

`:.\ text(Bob should choose Method 2.)`

Financial Maths, STD2 F1 2014 HSC 13 MC

Jane sells jewellery. Her commission is based on a sliding scale of 6% on the first $2000 of her sales, 3.5% on the next $1000, and 2% thereafter.

What is Jane’s commission when her total sales are $5670? 

  1. $188.40
  2. $208.40
  3. $321.85
  4. $652.05
Show Answers Only

`B`

Show Worked Solution

`text(Commission)`

`= (2000 xx text(6%)) + (1000 xx text(3.5%)) + (5670-3000) xx text(2%)`

`= (2000 xx 0.06) + (1000 xx 0.035) + (2670 xx 0.02)`

`= 120 + 35 + 53.40= $208.40` 

`=>  B`