Alex is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month. During his first month of employment, he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales, in accordance with his employment agreement. How much should Alex receive in his gross pay for the end of his first month

Respuesta :

Answer:

the alex should received the gross pay of $1,550 for the end of his first month

Explanation:

The computation of the gross pay is as follows

Salary ($18,000 ÷ 12 months)  $1,500

Add: Commission ($1,000 × 5%)  $50

Gross pay $1,550

We simply added the salary and the commission to determine the gross pay

hence, the alex should received the gross pay of $1,550 for the end of his first month