Question

The earnings of two employees are given below: Employee A: 6% commission on all sales Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000 How much more does a straight commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200

Answer 1

The answer is A becasuse 6% of 100,000 is 6000 while through the other equations you would only get 4800

Answer 2

Step
`1`

Find the earnings of Employee A

For sales of $
`100,000`

`Earning\ A= (6)/(100)*100,000 \\ \\ Earning\ A=6,000\ dollars`

Step
`2`

Find the earnings of Employee B

For sales of $
`100,000`

a) on the first $
`80,000`

`Earning\ B1= (4)/(100)*80,000 \\ \\ Earning\ B1=3,200\ dollars`

b) for the rest $
`20,000`

`Earning\ B2= (8)/(100)*20,000 \\ \\ Earning\ B2=1,600\ dollars`

c) Total earnings of Employee B

`Earning\ B=3,200+1,600=4,800\ dollars`

Step
`3`

Find the difference

`Earning\ A-Earning\ B=6,000-4,800\\ =1,200\ dollars`

therefore

the answer is the option

a. $
`1,200`