A sales rep for roofing materials figures he can generate about \( \$ 1,700,000 \) in business annually. What rate of commission does he need in order to earn \( \$ 40,000 \) ? The sales rep needs to be paid a commission rate of \( \square \% \) in order to earn \( \$ 40,000 \). (Round to one decimal place as needed.)

To determine the necessary commission rate for the sales representative to earn \$40,000 from \$1,700,000 in annual business, follow these steps: 1. **Understand the Formula:** \[ \text{Commission Rate} = \left( \frac{\text{Desired Earnings}}{\text{Total Sales}} \right) \times 100\% \] 2. **Plug in the Values:** \[ \text{Commission Rate} = \left( \frac{40,000}{1,700,000} \right) \times 100\% \] 3. **Calculate:** \[ \frac{40,000}{1,700,000} = 0.0235294118 \] \[ 0.0235294118 \times 100\% = 2.35294118\% \] 4. **Round to One Decimal Place:** \[ 2.35294118\% \approx 2.4\% \] **Answer:** The sales rep needs to be paid a commission rate of **2.4 %**.