Question

Jean sells office supplies. She is paid a graduated commission of 4% on 1st

$6,000 sales: 7 1/2% on next $6,000; and 10% on sales over $12,000. Her total
sales for the month are $14,640. How much did she earn in commission?*

Answer 1

Jean's total commission for the month, based on her graduated commission structure and $14,640 in sales, is $954. This is calculated by taking 4% of the first $6,000, 7.5% of the next $6,000, and 10% of the remaining sales over $12,000.

Step-by-step explanation:

To determine how much Jean earned in commission, we need to follow the rules of her graduated commission structure for her office supplies sales of $14,640. Here's how we break it down:

• She earns 4% on the first $6,000 of sales, which is $6,000 x 0.04 = $240.
• She earns 7 1/2% (or 0.075) on the next $6,000 of sales, which is $6,000 x 0.075 = $450.
• For sales over $12,000, which in Jean's case is $14,640 - $12,000 = $2,640, she earns 10%, so that's $2,640 x 0.10 = $264.

Now, we add these commissions together:

• $240 (from the first tier)
• + $450 (from the second tier)
• + $264 (from the third tier)

Therefore, Jean's total commission is $240 + $450 + $264 = $954.

Jean's total earnings from commission for the month are $954.