Question

You sell computers and earn a $30,000 salary, plus a bonus. Your bonus is 1/40 of the amount after EXCEEDING $100,000. If you earned $60,000 last year, how much OVER $100,000 did you sell?

Answer 1

Two steps. How much was your bonus? How great was your bonus-eligible sales volume if your bonus was 1/40 of it? Since the bonus-eligible amount is the excess above $100K and that's the exact question, you have your answer.

Answer 2

earnings - salary = bonus
bonus = .025 * (sales - 100,000)
solve for sales

Answer 3

I don't understand.

Answer 4

As philip has already pointed out:
$60,000 = 1/40 ( S - $100,000 )
-> S - 100,000 = $2, 400,000
Thus Sales: $2,500,000