Percentages

Question

Pam and mark are considering jobs where they will be paid strictly on commissions. The commissions is expected to be 5% on all sales of house water filters they close. Pams goal is to earn a gross salary of $65,000 a year. Marks goal is to earn a gross salary of $25,000 a year part time. How much in house water filer sales would Pam and mark need in order to reach their targeted salaries?

Answer 1

If they get paid by commission, then that means that they get paid by what they sell. Pam wants $65,000 and Mark $25,000. Meanwhile the store wants 5% of their sales to be water filters. That means 5% of the sales need to be the filters.

 

5% = 0.05

Now we need to multiply:

65000

   *.05

--------

3250.00

Remember, as we have two decimal places in the multiplication problem, we need to move the decimal spot over to the left two places (and that's why the answer is 3250 as opposed to 325000)

 

Now for mark:

25000

   *.05

----------

1250.00

 

So Pam needs to sell $3250 and Mark $1250 worth of filters.