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Phil Smith is a car salesman. Last week his total sales amounted to [tex]\$ 27,650.00[/tex], and he received [tex]\$ 1,382.50[/tex] in commission. What is his rate of commission?

A. [tex]5\%[/tex]
B. [tex]4.8\%[/tex]
C. [tex]17\%[/tex]
D. [tex]23\%[/tex]


Sagot :

To determine Phil Smith's rate of commission, we need to find the percentage of his total sales that his commission represents.

1. Identify the total sales and the commission received:
- Total sales: \[tex]$27,650.00 - Commission received: \$[/tex]1,382.50

2. Use the formula to calculate the rate of commission:
The rate of commission is given by the formula:
[tex]\[ \text{Commission Rate} = \left( \frac{\text{Commission Received}}{\text{Total Sales}} \right) \times 100\% \][/tex]

3. Substitute the given values into the formula:
[tex]\[ \text{Commission Rate} = \left( \frac{1,382.50}{27,650.00} \right) \times 100\% \][/tex]

4. Calculate the division:
[tex]\[ \frac{1,382.50}{27,650.00} \approx 0.05 \][/tex]

5. Multiply by 100 to convert to a percentage:
[tex]\[ 0.05 \times 100\% = 5\% \][/tex]

6. Conclusion:
Thus, Phil Smith's rate of commission is [tex]\( 5\% \)[/tex].

Therefore, the best answer is A. 5%.