stuck on this salary word problem

Question

Madelyn logan is an office furniture dealer who earns $18,000 base salary, She also earns 4% commision on sales. How much must she sell to earn a total of $55,000.

 

I dont know how to set this one up. and also, do i use 0.04? 1.04?

Answer 1

Madelyn logan's base salary is $18,000

Her total income is $55,000

So her income from commision is ($55,000 - $18,000) = $37,000

She earns 4% commision on sales  ⇒ 4% = 0.04

Total Sales = ( income from commision ) / ( commision rate )

= 37,000 / 0.04

= 925000

Hence total sale is $925000