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Math Help - commission question

  1. #1
    Newbie
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    Sep 2005
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    commission question

    doug wilson earned a commission of $2036.88 for March. If his rate of commission is 11.25% of net sales, and returns and allowances were 8% of gross sales, what were Doug's gross sales for the month?
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  2. #2
    MHF Contributor
    Joined
    Apr 2005
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    I don't fully understand this question as posted because I am not an Accountant or Economist or anybody who deals with accounting.
    I will solve it as I understand the question. My understanding might not be correct, but this solution is still based on my understanding.

    Four terms are mentioned: commission on Net sales, retuns, allowances, and gross sales.
    Based on those, my understanding is
    Net sale = (gross sale) minus (returns plus allowances)
    So,

    Net sales = (100 -8)% of Gross sales
    Net = 92% of Gross ----***

    $2036.88 = 11.25% of Net
    2036.88 = 11.25% of (92% of Gross)
    2036.88 = (0.1125)(0.92)Gross
    Gross = (2036.88) / (0.1125)(0.92)
    Gross = $19,680.00 ---------------answer.
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  3. #3
    Newbie
    Joined
    Sep 2005
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    thanks for help

    thank you for all the help. it makes complete sense now that you put it into propectives like that, thanks again, i will probably have alot more as the year moves on haha, so hopefully i'll be hearing from you again on my next problem, take care
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