Question

Pamela Mello is paid on an incremental commission schedule. She is paid 2.6% on the first $70,000 and 3.4% on any sales over $70,000.

If her weekly sales volume was $87,400, what was her total commission (in $)?
$

Answer 1

Explanation:

the total commission C is calculated by the formula

C = 2.6% of the first $70,000 + 3.4% of the amount above (over) $70,000 that is 87.400 - 70.000

C = (2.6/100)*70000 + (3.4/100)*(87400-60000)

C = 0.026*70000 + 0.034*(87400-60000)

C = 1820 + 0.034 (27,400)

C = 1820 + 931.60

C = $2,751.60