2. 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?
Answer: C
Terri's sales for the month amounted to $32,000.
To determine the amount of Terri's sales, we can use the formula for commission: Commission = Sales × Commission Rate. Given her commission of $1,600 and a commission rate of 5%, we can rearrange the formula to find sales: Sales = Commission / Commission Rate, which results in $1,600 / 0.05 = $32,000.
A) $15,230
This option is incorrect as it does not account for the correct commission rate. If Terri's sales were $15,230, her commission would only amount to approximately $761.50, which is significantly less than the $1,600 she earned.
B) $16,800
This option is also incorrect. Calculating the commission on $16,800 results in $840, which is still far below the $1,600 commission that Terri earned for the month of August.
C) $32,000
This is the correct answer. By calculating 5% of $32,000, we find that Terri's commission would indeed be $1,600, aligning perfectly with the information provided in the question.
D) $80,000
This option is incorrect because if Terri's sales were $80,000, her commission would be $4,000, which exceeds the $1,600 she actually earned. Thus, it does not match the given commission.
Conclusion
The correct answer is $32,000, as it accurately reflects the commission calculation based on the provided commission rate. All other options fail to meet the commission amount of $1,600, illustrating a misunderstanding of the commission formula or the given data.