6
QuizMultiple Choice

Variable Earnings — Quiz

Question 6 • Financial Math

Mr. Gonzalez earns his living as a salary plus commission employee. His annual salary is 18 dollars comma 000 He makes 4 percent commission on all of his sales. Mr. Gonzalez wants to earn 60 dollars comma 000 this year. If his earnings are divided evenly throughout the year, how much in monthly sales would Mr. Gonzalez need to have?

Answer
A
87 dollars comma 500
B
100 dollars comma 000
C
125 dollars comma 000
D
37 dollars comma 500

Explanation

Mr. Gonzalez needs $60,000 − $18,000 = $42,000 in commissions for the year. At a 4% commission rate, he must make $42,000 ÷ 0.04 = $1,050,000 in annual sales. Dividing by 12 months gives $87,500 in monthly sales, so the correct choice is A, $87,500.

AI-written and checked against the verified answer.

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