Question

david is paid on a graduated commission scale at lotrex company. he receives 2% commission on the first $20,000, 6% on sales from $20,000 to $70,000, 8.5% commission on sales from $70,000 to $100,000, and 10% commission on sales over $100,000. david had sales of $82,000. his commission is:

Answer 1

David's total commission for $82,000 in sales is $4,420, calculated by applying the respective graduated commission rates to his sales in each range.

Step-by-step explanation:

David's total commission based on his sales of $82,000 can be calculated by summing up the commissions from each segment of the graduated commission scale. He would receive 2% on the first $20,000, 6% on the next $50,000 (from $20,000 to $70,000), and finally, 8.5% on the remaining $12,000 (from $70,000 to $82,000).

Here's the breakdown of the calculations:

• Commission for first $20,000: $20,000 * 2% = $400
• Commission for the next $50,000: $50,000 * 6% = $3,000
• Commission for the remaining $12,000: $12,000 * 8.5% = $1,020

Adding these together gives us David's total commission:

$400 + $3,000 + $1,020 = $4,420.

Therefore, David's commission for sales of $82,000 is $4,420.