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? a. \( \$ 37,500 \) b. \( \$ 87,500 \) c. \( \$ 100,000 \) d. \( \$ 125,000 \)

To figure out how much Mr. Gonzalez needs to make in monthly sales, we start with his desired annual income of \( \$60,000 \). Subtracting his salary of \( \$18,000 \) from this total gives him \( \$42,000 \) that he needs to earn from commissions. Since he earns a commission of \( 4\% \) on his sales, we set up the equation: \[ 0.04 \times \text{Total Sales} = 42,000 \] Solving for Total Sales, we get: \[ \text{Total Sales} = \frac{42,000}{0.04} = 1,050,000 \] This is the total sales he needs to make for the year. To find out his monthly sales, we divide this by \( 12 \): \[ \text{Monthly Sales} = \frac{1,050,000}{12} = 87,500 \] Thus, the correct answer is \( b. \; 87,500 \). If you think calculating income a bit daunting, grab a calculator and check each step! A common mistake people make is forgetting to convert percentages or miscalculating the total required income, so double-check your math and you’ll be golden! For more on commission structures and salary negotiations, explore books like "The Salary Negotiation Guide" or check out articles on earning potential in your field. A little research might just fetch you a raise too!