Irene sells insurance. She earns a ₱7,000 base monthly salary plus 3% commission on total sales. This month she sold ₱500,000 worth of policies. What is her total monthly earning?
Answer (2)
Irene's total monthly earnings include a base salary of ₱7,000 and a commission of ₱15,000 from sales, amounting to a total of ₱22,000. Her commission is calculated as 3% of her sales of ₱500,000. Thus, her total earnings for the month are ₱22,000.
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To calculate Irene's total monthly earnings, we need to consider both her base salary and her commission from sales.
Base Salary : Irene earns a fixed base salary of ₱7,000 per month.
Commission : She also receives a commission of 3% on her total sales. This month, she sold ₱500,000 worth of insurance policies. To find the commission, we multiply the total sales by the commission rate:
Commission = Total Sales × Commission Rate = \₱ 500 , 000 × 0.03 = \₱ 15 , 000
Total Earnings : To find her total monthly earnings, we add the base salary to the commission earned:
Total Earnings = Base Salary + Commission = \₱ 7 , 000 + ₱15 , 000 = \₱ 22 , 000
Therefore, Irene's total monthly earnings for this month are ₱22,000.
