Praxis 5511 Practice Question
Terri earns 5% commission. If her August commission was $1,600, what were her sales?
Correct Answer: C
Rationale: To find Terri's sales, we use the formula: Sales = Commission ÷ Commission Rate. Given her commission of $1,600 and a commission rate of 5% (or 0.05), we calculate: $1,600 ÷ 0.05 = $32,000.
Option A (15,200) results from misapplying the commission rate. Option B (16,800) incorrectly assumes a higher commission rate. Option D (30,000) miscalculates the total sales by using an incorrect division of commission. Thus, $32,000 accurately reflects her total sales based on the provided commission and rate.
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