My question is: Kristy, a sales representative earns a basic salary of $7.50 per hour plus a 16% commission on everything she sells. This month, she worked for 160 hours and sold $25000 worth of items. Her monthly budget for food, clothing, rent, transportation, bills and savings is 95% of her total monthly earnings and the rest will be put towards insurance. How much did she allocate to insurance? Your thoughts:
Kristy earns a basic salary of $7.50 x 160 = $1200. Her total commission is $25000 x 16 / 100 = $4000. Thus, her total earning is $1200 + $4000 = $5200. Her monthly budget aside from the insurance is $5200 x 95 / 100 = $4940. Therefore, she allocated $5200 - $4940 = $260 on insurance. The final answer: 260.