Question 44

Terri's sales amounted to $32,000.

To determine Terri's sales, we can use the formula for calculating commission, which is Sales = Commission / Commission Rate. Given that her commission was $1,600 and her commission rate is 5%, her total sales can be calculated as $1,600 / 0.05, resulting in $32,000.

A) 15,200

This option is incorrect because if Terri's sales were $15,200, her commission would be calculated as 5% of that amount, which equals $760. This does not match the given commission of $1,600.

B) 16,800

This option is also incorrect. A sale amount of $16,800 would yield a commission of 5% of that total, which calculates to $840. This is significantly less than the stated commission of $1,600.

C) 32,000

This option is correct. By applying the commission formula, $1,600 divided by 0.05 equals $32,000. This matches perfectly with the calculated sales based on her commission rate and amount earned.

D) 30,000

This option is incorrect. If Terri's sales were $30,000, the commission would be 5% of that, amounting to $1,500. This does not correspond with the commission she actually earned, which was $1,600.

Conclusion

The correct answer is $32,000, as it accurately reflects the calculation based on Terri's commission rate and the commission amount she earned in August. All other options fail to meet the requirements of the commission formula, leading to incorrect sales figures.