4
QuizMultiple Choice

Variable Earnings

Question 4 • FL-2102373-Personal Finance and Money Management Honors

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?

Answer
A
$37,500
B
$87,500
C
$100,000
D
$125,000

Explanation

Mr. Gonzalez needs $60,000 total earnings, and $18,000 comes from his salary, so he must earn $42,000 in commission. At 4%, that requires annual sales of $42,000 ÷ 0.04 = $1,050,000. Dividing by 12 months gives $87,500 in monthly sales, which is choice B.

AI-written and checked against the verified answer.

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