Mr. Gonzalez earns his living as a salary plus commission employee. His annual salary is $18,000. He makes 4% commission on all of his sales. Mr. Gonzalez wants to earn $60,000 this year. If his earnings are divided evenly throughout the year, how much in monthly sales would Mr. Gonzalez need to have?a.$37,500b.$87,500c.$100,000d.$125,000

Accepted Solution

In monthly sales would mr. gonzalez need to have $100000Mr. Gonzalez earns his living as a salary plus commission employee, then his annual earnings can be represented byWhat is the formula for monthly earning? Monthly earnings=a+bxWhere a =his annual salary (fixed), b = the percentage of sales commission and X =represents the volume of sales made each year.Therefore When  Mr. Gonzalez annual salary is $18,000 and makes a commission of 4%, his annual sales that will enable him earn an annual salary of $60,000 will be equal to$60000 = $18000 + 0.04X$60000 - $18000 = 0.04X$48000 = 0.04X0.04X = $1200000X = $48000/0.04=12000000X=$12000000Therefore, his monthly sales is given by his  earnings divided evenly each month is equal to$1200000/12=$100000So the option c is correct.To learn mpre about the earning visit: