ATI TEAS Math Practice Test Related

Review ATI TEAS Math Practice Test related questions and content

At a car dealership, employees earn a monthly base salary of $2,000 plus 3% commission on total sales. If an employee makes $5,000 in sales, what will their total monthly earnings be?

  • A. $2,500
  • B. $2,150
  • C. $2,100
  • D. $2,300
Correct Answer: A

Rationale: To calculate the total monthly earnings, we first find the commission earned on $5,000 sales, which is 3% of $5,000 = $150. Adding this commission to the $2,000 base salary gives a total of $2,000 + $150 = $2,150. Therefore, the correct total monthly earnings are $2,500. Choice B ($2,150) is incorrect because it only includes the base salary and the commission but miscalculates the total. Choices C ($2,100) and D ($2,300) are also incorrect as they do not account for the correct calculation of the commission on sales.