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Dyami earns a 4% commission for the first $30,000 of sales he makes per month. He earns a 5% commission for the portion of his sales over $30,000. If Dyami sells $38,000 worth of merchandise in a month, how much will he earn in commissions, in dollars? ◻

Dyami earns a 4%4\% commission for the first $30,000\$30,000 of sales he makes per month. He earns a 5%5\% commission for the portion of his sales over $30,000\$30,000. If Dyami sells $38,000\$38,000 worth of merchandise in a month, how much will he earn in commissions, in dollars?\newline◻

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Full solution

Q. Dyami earns a 4%4\% commission for the first $30,000\$30,000 of sales he makes per month. He earns a 5%5\% commission for the portion of his sales over $30,000\$30,000. If Dyami sells $38,000\$38,000 worth of merchandise in a month, how much will he earn in commissions, in dollars?\newline◻
  1. Calculate First Commission: First, calculate the commission for the first $30,000\$30,000 of sales at 4%4\%.$30,000×0.04=$1,200.\$30,000 \times 0.04 = \$1,200.
  2. Determine Sales Over $\$3030,000000: Next, figure out the amount of sales over $\$3030,000000.$38,000−$30,000=$8,000\$38,000 - \$30,000 = \$8,000.
  3. Calculate Second Commission: Now, calculate the commission for the $8,000\$8,000 at 5%5\%.$8,000×0.05=$400\$8,000 \times 0.05 = \$400.
  4. Add Commission Amounts: Finally, add both commission amounts to get the total commission.$1,200+$400=$1,600.\$1,200 + \$400 = \$1,600.

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