To determine Phil Smith's rate of commission, we need to find the percentage of his total sales that his commission represents.
1. Identify the total sales and the commission received:
- Total sales: \[tex]$27,650.00
- Commission received: \$[/tex]1,382.50
2. Use the formula to calculate the rate of commission:
The rate of commission is given by the formula:
[tex]\[
\text{Commission Rate} = \left( \frac{\text{Commission Received}}{\text{Total Sales}} \right) \times 100\%
\][/tex]
3. Substitute the given values into the formula:
[tex]\[
\text{Commission Rate} = \left( \frac{1,382.50}{27,650.00} \right) \times 100\%
\][/tex]
4. Calculate the division:
[tex]\[
\frac{1,382.50}{27,650.00} \approx 0.05
\][/tex]
5. Multiply by 100 to convert to a percentage:
[tex]\[
0.05 \times 100\% = 5\%
\][/tex]
6. Conclusion:
Thus, Phil Smith's rate of commission is [tex]\( 5\% \)[/tex].
Therefore, the best answer is A. 5%.
