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Wilson Rooeboker brokers sales agreements for a major home builders chain. He is paid a straight commission of 1.5% of the contract plus an annual bonus of 2.5% of total contracts over $1,500,000 per year. What is his total pay for a year in which he had total contracts for $2,555,500?

Respuesta :

sqdancefan

Answer:

  $64,720

Step-by-step explanation:

The straightforward way to figure this is ...

  total pay = straight commission + annual bonus

  = 1.5% × 2,555,500 + 2.5% ×(2,555,500 -1,500,000)

However, this expression can be simplified a little bit to ...

  2,555,500 × (1.5% +2.5%)  -2.5% × 1,500,000

  = 4% × 2,555,000 -2.5% × 1,500,000

  = 102,220 -37,500

  total pay = $64,720

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