190k views
1 vote
The earnings of two employees are given below: Employee A: 5% commission on all sales. Employee B: 3% commission on the first $70,000 and 9% commission on anything over $70,000. How much more does a graduated commission employee make over a straight commission employee for sales of $130,000? A. $500 B. $2,000 C. $1,100 D. $1,500

User Dipo
by
7.5k points

1 Answer

6 votes

Answer:

The graduated commission employee makes $1,000 more.

Explanation:

Sale of $130,000.

Employee A:

5% on all sales. So a commission of 5% of $130,000 which is: 0.05*130000 = $6,500.

Employee B:

3% commission on the first $70,000 and 9% commission on anything over $70,000.

So a commission fo 3% for the first $70,000 and 9% for $130,000 - $70,000 = $60,000. So

0.03*70000 + 0.09*60000 = $7,500

$7,500 - $6,500 = $1,000

The graduated commission employee makes $1,000 more.

User Fstab
by
7.4k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories