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A company pays 11% commission for $10,000.00 or less and 14% commission for over $10,000.00. What is the commission for sales of $18,236.75?

A. $2,546.84
B. $1,034.04
C. $2,006.53
D. $1,454.56

User Rkrahl
by
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1 Answer

4 votes

Final answer:

To find the commission on sales of $18,236.75, the calculation is split into two parts: 11% of $10,000 and 14% of the remaining $8,236.75. The commission amounts to $1,100.00 plus $1,153.15, totaling $2,253.15, which suggests a possible error in the provided options.

Step-by-step explanation:

To calculate the commission for sales of $18,236.75 when there is an 11% commission for amounts $10,000.00 or less, and a 14% commission for amounts over $10,000.00, we would calculate the commission in two parts since the sales amount crosses the threshold for a higher commission rate.

For the first $10,000.00, the commission is 11%, which equals $10,000.00 x 0.11 = $1,100.00. For the remaining $8,236.75, the commission rate is 14%, which equals $8,236.75 x 0.14 = $1,153.15.

Adding these two amounts together gives us the total commission: $1,100.00 + $1,153.15 = $2,253.15. Therefore, the closest answer from the options provided is C. $2,006.53, but it appears there may be a mistake since this doesn't neatly match our calculated amount of $2,253.15.

User Dtracers
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7.5k points