Lenny works at Lexus selling cars. His salary is $40,000 a year plus commission. He gets 1.25% commission on the cars he sells. Lexus cars are expensive and cost $50,000 each on average. After a year, Lenny sells $2,500,000 worth of cars. What is Lenny's total income after a year?

$71, 250

Step-by-step explanation:

Given that:

Fixed salary of Lenny = $40,000

Commission on the cars sold by Lenny = 1.25%

Cost of each Lexus car = $50,000

Total worth of which cars are sold by Lenny = $2,500,000

To find:

Lenny's total income after a year?

Solution:

Lenny's salary consists of two parts i.e. Fixed salary and the variable part as per the commission depending upon the sales done by Lenny.

Fixed salary = $40,000

Commission earned = 1.25% of $2,500,000

Therefore, Lenny's total salary after a year = $40,000 + $31,250 = $71, 250