A salesman's income consists of a commission and a base salary of $350 per week. Over the past 5 weeks, his weekly income totals have been $406, $413, $420, $436 and $395. What must his average (arithmetic mean) commission be per week over the next two weeks so that his average weekly income is $500 over the 7-week period?
A. $150 B. $245 C. $365 D. $715 E. $730
(C) We need to do this problem step-by-step.
First, we add up the total income amounts for the past 5 weeks: $406 + $413 + $420 + $436 + $395 = $2070.
To average $500 over 7 weeks, the salesman would need to earn: $500 × 7 = $3500.
Subtract $2070 from $3500 to determine how much he would need to earn, in total, over the next 2 weeks to average $500 for the 7 weeks: $3500 – $2070 = $1430.
Since he will earn $700 in base salary over the next two weeks, the commission he must earn in the next two weeks is: $1430 – $700 = $730.
This is an average of $730/2 = $365 per week for these two weeks.
The correct answer is choice (C). ----------
Question Statemtn does not clarify the amount for Salary. It misleads the reader to believe that Commission + Salary is $350 instead of the just the base salary of $350.
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