John has a job at indiana motors. The salary is $1200 per month, plus 3% of every car or truck that Najma sells (this is called commission)

Question

a) The total of sales prices of all the vehicles that Najma sold during the first month on the job was $72,000. What was Najma's income (salary plus commission)?

b) In order to make $6000 in a single month, how much selling must Najma do?

c) Write linear equation that expresses Najma's monthly income y in terms of the value x of vichles Najma sold.

d) Graph this equation. What are the meanings of its y-intercept and slope?

Answer 1

a) Najma makes $1200 per month (base salary) plus 3% commissions on all vehicles she sells. This salary structure (a base salary plus commissions) is very common in Sales jobs because it gives an incentive to the Sales person to sell more (they make more money if they sell more).

Najma's Salary = 1200 + 3% * 72000

= 1200+ 2160

= 3360 dollars in that month

b) To make a total salary = $6000, Najma will have to sell x dollars worth of commissions.

6000 = 1200 + 3% * x

6000 = 1200 + 0.03x

6000- 1200 = 0.03 x ; moving number constants to one side (the sign changes when we move to other side)

4800 = 0.03x

x= 4800/0.03

x = 160000

Najma will have to have $160,000 in her total sales of vehicles and she will earn 3% commission on them (3% * 160,000 = 4800).

c) y = 1200 + 0.03 x

d) This function is in the form of y = mx +b where m = 0.03 and b = 1200

This means that the graph will have a positive slope and a positive y axis intercept. Can you think about how this graph will look like? Give it a try and send me a message if you need help : )

Good luck!