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\begin{tabular}{l} Phetolo works as a sales assistant for a cell phone company. \\ He earns a basic salary of R5 000 per month as well as a \( 10 \% \) \\ commission for cell phones sold above monthly quota. \\ If the monthly quota is R12 000 and he sells phone to the value of \\ R35 000 in the month, how much will Phetolo earn for the month. \\ ( \\ \hline \\ A. R 7300 \\ B. R 8500 \\ C. R 17000 \\ D. R 8000\end{tabular}

Ask by Hampton Huff. in South Africa
Mar 09,2025

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Answer

Phetolo will earn R7300 for the month.

Solution

1. Determine the value of sales above the monthly quota: \[ \text{Excess Sales} = 35000 - 12000 = 23000 \] 2. Calculate the commission (10% of excess sales): \[ \text{Commission} = 0.10 \times 23000 = 2300 \] 3. Add the basic salary to the commission to get the total earnings: \[ \text{Total Earnings} = 5000 + 2300 = 7300 \] The correct answer is A. R7300.

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The Deep Dive

To determine Phetolo's earnings for the month, we start with his basic salary of R5,000. Next, we find out how much he earned in commission. His sales amounted to R35,000, which exceeds his monthly quota of R12,000. The amount exceeded is R35,000 - R12,000 = R23,000. Phetolo earns a 10% commission on this amount over the quota, so his commission is 10% of R23,000, which equals R2,300. Adding his basic salary and commission together: R5,000 (salary) + R2,300 (commission) = R7,300. Therefore, Phetolo will earn a total of R7,300 for the month, which means the correct answer is A. R 7300. --- Learning about commissions can be applied to many professions, not just sales! For instance, real estate agents, car salespeople, and even some freelance jobs offer commission structures as an incentive to boost performance. Understanding how commissions work can also help you negotiate better pay for yourself! If you ever find yourself in a commission-based role, remember that not all sales will meet quotas every month. Staying organized, tracking sales progress, and regularly checking on performance can prevent unpleasant surprises at pay time. Moreover, be cautious not to neglect customer relationships in pursuit of sales; loyal customers can become repeat buyers!

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