Each week Ingrid earns a fixed salary and a sales commission that is a fixed percentage of her sales for that week. Ingrid has no other sources of income. Last week Ingrid's total earnings were $500 and her sales were $2,000. This week Ingrid's total earnings were $700 and her sales were $6,000. What is the percentage rate for Ingrid's sales commissions?
Ingrid's sales commission percentage rate is 5%.
Ingrid's earnings consist of a fixed salary plus a commission based on her sales. By analyzing her total earnings and sales for the two weeks, we can determine that her commission rate is 5%.
This option suggests an extremely low commission rate which would not account for Ingrid's total earnings given her sales figures. With sales of $2,000 and a commission of only 0.05%, her total earnings would not reach $500, indicating that this option is incorrect.
If Ingrid's commission rate were 4%, her commission from sales of $2,000 would yield only $80, resulting in total earnings of far less than $500 when combined with her fixed salary. Similarly, with sales of $6,000, the earnings would not reach $700, making this option invalid.
This is the correct answer. At a commission rate of 5%, Ingrid earns $100 from $2,000 in sales (5% of 2000) in the first week. If her fixed salary is $400, her total earnings equal $500. In the second week, she earns $300 from $6,000 in sales (5% of 6000), totaling $700 when added to the same salary of $400, confirming the commission rate.
A commission rate of 20% would result in excessive earnings based on her sales figures. For instance, at 20%, her commission for $2,000 in sales would be $400, leading to total earnings of $800, which exceeds the reported $500.
This option suggests an even higher commission rate, which would lead to total earnings that far surpass what Ingrid reported. At 30%, her commission for $2,000 in sales would be $600, resulting in total earnings of $1,000, which is not possible according to the question.
Ingrid's commission rate of 5% accurately reflects her earnings based on the provided sales data. The calculations for both weeks confirm that this percentage allows her fixed salary and commission to align with her reported total earnings. Incorrect options fail to meet the earnings criteria established in the question, reinforcing the conclusion that 5% is the only viable commission rate.
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