Terry, a single employee with two dependents under the age of 17, is paid $12 per hour

Question:

Terry, a single employee with two dependents under the age of 17, is paid $12 per hour and receives a commission on net sales. No commission is received until net sales exceed $150,000. Once the minimum net sales are reached, the 4 percent commission on sales applies. During the week of January 28, there were $87,000 of sales; however, $2,250 of returns from the prior week’s sales. Company policy requires that commissions on sales returns are deducted from the employee’s pay, regardless of current commission earnings. Compute Terry’s gross pay for the 40-hour weekly pay period.