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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. R R R 7300 A. R 800 B. R 17000 C. R 8000 D. R

Ask by Newton Byrd. in South Africa
Mar 08,2025

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Answer

Phetolo earns R7,300 for the month.

Solution

1. **Identify the quota and sales value:** Monthly quota \(= R12\,000\) Total sales value \(= R35\,000\) 2. **Calculate the amount exceeding the quota:** \[ \text{Sales above quota} = R35\,000 - R12\,000 = R23\,000 \] 3. **Determine the commission earned:** Commission rate \(= 10\% = 0.10\) \[ \text{Commission} = 0.10 \times R23\,000 = R2\,300 \] 4. **Compute the total earnings:** Basic salary \(= R5\,000\) \[ \text{Total earnings} = R5\,000 + R2\,300 = R7\,300 \] Thus, Phetolo earns \(R7\,300\) for the month.

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To calculate Phetolo's earnings for the month, we first need to figure out his commission. Since his sales were R35,000, we subtract the monthly quota of R12,000 to find the excess sales: R35,000 - R12,000 = R23,000. Phetolo earns a 10% commission on this amount: 10% of R23,000 = 0.10 * R23,000 = R2,300. Next, we add his basic salary of R5,000 to the commission: R5,000 + R2,300 = R7,300. So, Phetolo’s total earnings for the month would be R7,300. Phetolo came very close to hitting the jackpot with his commission! Many sales assistants use the technique of setting personal goals that go beyond the quota to boost motivation and performance. This approach not only makes the work more engaging but also can lead to higher earnings and improved customer service! Additionally, it’s vital for salespeople to keep track of their sales progress throughout the month. A common mistake is waiting until the end of the month to assess performance and realize that they could have pushed a little harder to meet or exceed targets, which could lead to a greater commission! Keeping a daily log of sales can be a game-changer!

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