Alix is a salesperson who receives an annual salary of 18000

Alix is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month. During his first month of employment, he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales, in accordance with his employment agreement. How much should Alix receive in his gross pay for the end of his first month?

Solution

Computation of gross pay at the end of first month:
Salary, 18,000 /12 months = $1,500
Add: Commission, $1,000*5% = $50
Gross pay =$1,550