Jim Ross is an automobile salesman who receives a salary of $500 per week plus a commission of 3% on all sales. During a four-week period he sold $42,000 worth of cars. What were Jim's average earnings?

Respuesta :

4 * 500 = $2,000 

Then, you must calculate how much he earned by the commission: 

$42,000 * 3% 

(3% = 3/100) 

42,000 * 3/100 = 420 * 3 = $1260 

Finally, you add what he earned form the commission plus the 4 weeks salary: 

$2,000 + $1260 = $3,260

Based on his weekly salary as well as the amount he earns from commission, Jim Ross made a total of $3,260 in those four weeks.

The period of interest is 4 weeks so we need to find the base salary in that time:

= Number of weeks x salary per week

= 4 x 500

= $2,000

The commission earned is:

= Commission rate x Amount sold for cars

= 3% x 42,000

= $1,260

The total income is:

= 2,000 + 1,260

= $3,260

In conclusion, Jim's average earnings are $3,260.

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