Hawaii Pre-Licensing National Practice Exam

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Prepare for the Hawaii Pre-Licensing National Exam. Study with flashcards and multiple choice questions, each question provides hints and explanations. Get ready for success!

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If a licensee wants to earn $2,220 monthly and is paid a salary of $600 plus a commission, what amount in sales is necessary to meet this income goal?

$36,000
$54,000
$60,000
$48,000

The correct answer is: $54,000

To determine the total amount in sales necessary for the licensee to reach an income goal of $2,220, we start by subtracting the fixed salary from the desired income. The licensee earns a salary of $600, so we need to find out how much more they need to earn through commission: $2,220 (income goal) - $600 (salary) = $1,620 (amount needed from commission). Next, if we assume the commission rate is a certain percentage of sales and we denote that percentage as "C," the total sales required can be calculated. However, the question does not specify the commission rate. For the sake of analysis, let's assume the commission rate is a common one, such as 5% (0.05) for illustration purposes. To find the amount of sales required to generate $1,620 in commission at this assumed commission rate, we can set up the equation: Sales = Commission Amount / Commission Rate. So, in this case: Sales = $1,620 / 0.05 = $32,400. This hypothetical scenario illustrates how to approach the problem. However, if we assume that perhaps the most relevant percentage has per-collected or region-specific rates, it