Praxis 5511 Practice Test Practice Question
Every month Terri earns a 5% commission on the amount of her sales. If Terri's total commission was $1,600 during the month of August, what was the amount of her sales for the month?
Correct Answer: C
Rationale: To determine Terri's sales amount, we can use the formula for commission: Commission = Sales × Commission Rate. Given that Terri earned $1,600 in commission at a rate of 5% (or 0.05), we can set up the equation:
$1,600 = Sales × 0.05.
Solving for Sales gives us Sales = $1,600 / 0.05, which equals $32,000.
Option A ($15,230) is incorrect, as it does not reflect the calculated sales based on the commission. Option B ($16,800) also fails to match the commission formula. Option D ($80,000) suggests a higher sales figure, resulting in a commission of $4,000, which exceeds the given commission of $1,600. Only option C correctly represents the sales amount based on the commission earned.
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