Hi VJesus12,

We're told that a sales staff is composed of a Sales Manager and 2 Sales People, all of whom earn commission as a percentage of sales and each Sales Person earns 5% commission on sales. In a given week, the sales staff earned a total of $1,750 in commissions on $5,000 worth of sales. We're asked for the commission rate of the Sales Manager earn during that week. Although the prompt doesn't clearly state it, we're meant to assume that the each person earns a commission based on the TOTAL sales for the GROUP.

With $5,000 in TOTAL sales, EACH Sales Person earns (.05)($5,000) = $250 in commission

This means that the remaining $1750 - (2)($250) = $1250 in commission went to the Sales Manager.

The Sales Manager's commission rate = $1250/$5000 = 2500/10,000 = 1/4 = 25%

Final Answer: A

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