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10 January, 16:49

A company offers a series of products for sale which pay different rates of commission to the salesperson. Platinum products pay a 20 percent commission. Gold products pay a 15 percent commission. Silver products pay 10 percent and Bronze products pay 5 percent. How much would a salesperson need to sell in Platinum products in order to equal the total commissions earned from a combined sale of $1,000 in Gold products and $15,000 in Bronze products? 1) $11,250 2) $900 3) $3,600 4) $4,500

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  1. 10 January, 17:00
    0
    4) $4,500

    Explanation:

    According to given data

    Commission rates

    Platinum products = 20%

    Gold Product = 15%

    Silver product = 10%

    Bronze Product = 5%

    According to given condition

    Platinum Product sale Commission = Gold Product sale Commission + Bronze Product sale Commission

    Platinum Product sale x 20% = Gold Product sale x 15% + Bronze Product sale 5%

    Platinum Product sale x 0.2 = $1000 x 0.15 + $15000 x 0.05

    Platinum Product sale x 0.2 = $150 + $750

    Platinum Product sale x 0.2 = 900

    Platinum Product sale = 900 / 0.2 = $4,500
  2. 10 January, 17:15
    0
    4) $4,500

    Explanation:

    Step 1: Calculation of total commissions earned from a combined sale of $1,000 in Gold products and $15,000 in Bronze products.

    Commissions earned from Gold = Gold sales amount * Commission rate

    = $1,000 * 15%

    Commissions earned from Gold = $150

    Commissions earned from Bronze = Bronze sales amount * Commission rate

    = $15,000 * 5%

    Commissions earned from Bronze = $750

    Total commissions earned from Gold and Bronze sales = $150 + $750 = $900

    Step 2: Calculation of the amount a salesperson need to sell in Platinum products in order to equal the total commissions earned from a combined sale of $1,000 in Gold products and $15,000 in Bronze products.

    Commissions earned from Platinum = Platinum sales amount * Platinum commission rate

    To calculation of the amount a salesperson need to sell in Platinum products in order to equal the total commissions earned from a combined sale of $1,000 in Gold products and $15,000 in Bronze products, we set the commissions earned from Platinum equal to the total commissions earned from Gold and Bronze sales as follows:

    Platinum sales amount * Commission rate = $900

    Since the platinum commission rate is 20% or 0.2, we have:

    Platinum sales amount * 0.2 = $900

    Platinum sales amount = $900 : 0.2 = $4,500

    Therefore, a salesperson need to sell $4,500 in Platinum products in order to equal the total commissions earned from a combined sale of $1,000 in Gold products and $15,000 in Bronze products.
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