Question

Isabelle made fifty-eight thousand dollars last year. Randall made forty thousand dollars plus fifteen percent commission on eighty thousand dollars in sales. Who had a higher income last year? Explain

Answer 1

Isabelle made $58,000.

Randall made $40,000 + (.15)(80,000)
40,000 + 12,000 = $52,000

Isabelle made more last year then Randall did.

When you get paid on a commission, you get paid a percentage of how much you sell. Randell apparently sold $80,000 of which he gets paid 15% of that plus his salary of $40,000. Together, Randall's total income for the year was $52,000 which is $6000 less then Isabelle.