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AssignmentMultiple Choice

Variable Earnings

Question 1 • FL-2102373-Personal Finance and Money Management Honors

Bayo is a salaried plus commission employee who has a monthly salary of $2,500 and earns 5.5% commission on all sales. Which of the following expressions represents Bayo’s total earnings in one month if Bayo had $6,300 in sales?

Answer
A
2,500 + (0.055)(6,300)
B
2,500 + (5.5)(6,300)
C
(2,500)(5.5) + 6,300
D
(2,500)(0.055) + 6,300

Explanation

Bayo’s total earnings are the monthly salary plus the commission on sales. A 5.5% commission is written as 0.055, so the commission on $6,300 is represented by (0.055)(6,300). Adding the $2,500 salary gives 2,500 + (0.055)(6,300), which is choice A.

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