Answer:
To determine the rate of commission that the sales rep needs in order to earn $50,000 from generating $1,800,000 in business annually, we can use the formula:
Commission = (Earnings / Total Sales) * 100
Where:
Commission is the rate of commission as a percentage,
Earnings is the desired earnings ($50,000 in this case), and
Total Sales is the total amount of business generated ($1,800,000 in this case).
Plugging in the given values into the formula:
Commission = ($50,000 / $1,800,000) * 100
Calculating this equation gives us:
Commission = 0.02777777778 * 100
Commission = 2.777777778
Rounding up to the nearest whole number, the sales rep would need a commission rate of 3% in order to earn $50,000 from generating $1,800,000 in business annually.
Explanation: