Work out Sue's total pay for the year.

Question

ScanSolve AI Tutor · Accepted Answer

Here's how to calculate Sue's total pay for the year:

Calculate the company's total profit for the year.
Profit is the total income minus the total cost.
$\text{Total Profit} = \pounds549,000 - \pounds473,500 = \pounds75,500$
Calculate Sue's annual fixed salary.
She earns a salary of £1410 per month for 12 months.
$\text{Annual Salary} = \pounds1410/\text{month} \times 12 \text{ months} = \pounds16,920$
Calculate Sue's annual commission from profit.
She receives 26% of the total profit.
$\text{Annual Commission} = 26\% \times \pounds75,500 = 0.26 \times \pounds75,500 = \pounds19,630$
Calculate Sue's annual bonus.
She receives a £390 bonus for each month she sells at least 16 cars. This happened for 4 months.
$\text{Annual Bonus} = \pounds390/\text{month} \times 4 \text{ months} = \pounds1,560$
Calculate Sue's total pay for the year.
Add her annual salary, annual commission, and annual bonus.
$\text{Total Pay} = \text{Annual Salary} + \text{Annual Commission} + \text{Annual Bonus}$ $\text{Total Pay} = \pounds16,920 + \pounds19,630 + \pounds1,560 = \pounds38,110$
Sue's total pay for the year is £38,110.

The final answer is $\pounds38,110$ .

Answer