This business/management problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
You're on a roll — Step 1: Calculate the sales eligible for commission. The commission is paid on sales over Ksh 100,000. Eligible sales = Total sales - Threshold Eligible sales = Ksh. 500,000 - Ksh. 100,000 Eligible sales = Ksh. 400,000 Step 2: Calculate the commission earned. The commission rate is 5% of the eligible sales. Commission = 5\% × Ksh. 400,000 Commission = 0.05 × 400,000 Commission = Ksh. 20,000 Step 3: Calculate the total earnings (gross earnings). Total earnings include the monthly salary and the commission. Total earnings = Monthly salary + Commission Total earnings = Ksh. 15,000 + Ksh. 20,000 Total earnings = Ksh. 35,000 Step 4: Calculate the tax remitted. Tax is 2% of his total earnings. Tax = 2\% × Total earnings Tax = 0.02 × 35,000 Tax = Ksh. 700 Step 5: Calculate his monthly net earnings. Net earnings are total earnings minus tax. Net earnings = Total earnings - Tax Net earnings = Ksh. 35,000 - Ksh. 700 Net earnings = Ksh. 34,300 His monthly net earnings are Ksh. 34,300. Got more? Send 'em!