Terri earns 5% commission. If her August commission was $1,600, what were her sales?

Rationale

Terri's sales amounted to $32,000.

To determine her total sales based on her commission rate, we can use the formula: Total Sales = Commission / Commission Rate. Given that Terri earned a commission of $1,600 at a rate of 5%, her total sales can be calculated as $1,600 / 0.05, which equals $32,000.

A (15,200) YOUR ANSWER

This choice is incorrect because if Terri's sales were $15,200, her commission would be calculated as $15,200 * 0.05, resulting in a commission of only $760. This does not match the given commission of $1,600.

B (16,800) YOUR ANSWER

This choice is not correct either. If Terri's sales were $16,800, her commission would be $16,800 * 0.05, which equals $840. Again, this figure does not match the commission she earned in August.

C (32,000) CORRECT

This is the correct choice. Terri's commission of $1,600 at a rate of 5% implies total sales of $1,600 / 0.05, which accurately calculates to $32,000. This aligns perfectly with the figures provided.

D (30,000) YOUR ANSWER

This option is incorrect. If Terri's sales were $30,000, her commission would be $30,000 * 0.05, resulting in a commission of $1,500. This does not match the $1,600 she earned in commissions for August.

Conclusion

To find Terri's total sales, the correct calculation uses her commission divided by the commission rate, confirming her sales totaled $32,000. The other options do not yield the correct commission based on the 5% rate, illustrating the importance of accurate calculations in commission-based earnings.

Terri earns 5% commission. If her August commission was $1,600, what were her sales?

Terri's sales amounted to $32,000.

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