In an insurance company, a salesperson is given 2% commission on her first P10,000 worth of sales, 5% commission on her next P20,000 worth of sales, and 10% on sales in excess of P30,000. How much is her total pay in a month if she has a salary of P15,000 and a total sales of P80,000?
Answer (1)
To find the salesperson's total pay in a month, we need to calculate the commission on her sales and then add it to her base salary of P15,000.
First, we break down her total sales of P80,000 into the different commission segments:
First P10,000 :
Commission rate: 2%
Commission = P10,000 * 0.02 = P200
Next P20,000 (from P10,001 to P30,000):
Commission rate: 5%
Commission = P20,000 * 0.05 = P1,000
Sales in excess of P30,000 (from P30,001 to P80,000):
Total excess sales = P80,000 - P30,000 = P50,000
Commission rate: 10%
Commission = P50,000 * 0.10 = P5,000
Next, we calculate the total commission by adding the commissions from each segment:
Total Commission = P 200 + P 1 , 000 + P 5 , 000 = P 6 , 200
Now, to find the total pay, we add the total commission to her base salary:
Total Pay = P 15 , 000 + P 6 , 200 = P 21 , 200
Therefore, her total pay in a month is P21,200 .
