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nathaniel was talking to his friend, naomi, and they were comparing the pay they got for being car salespeople at different auto dealerships. nathaniel was getting paid only based on commissions from the cars he sold, and he was earning about $40,000 per year. naomi was getting a small salary, plus commissions, so she got paid about $50,000 per year. nathaniel was a little disgruntled when he heard this. what was his view of his salary based on?

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Final answer:

Nathaniel's dissatisfaction stems from his commission-only salary structure, contrasting with Naomi's base salary plus commission. Understanding compensation structure is critical for financial stability, and negotiating can substantially increase one's salary. Gender wage gaps still persist regardless of education level, affecting total earnings.

Step-by-step explanation:

Nathaniel's view of his salary is based on commission work where his earnings are directly tied to the number of cars he sells, unlike Naomi, who receives a base salary in addition to commissions. This scenario highlights a common approach in sales jobs, where compensation may include various structures, such as commission-only, salary-plus-commission, or salary-only models. Examining their pay, Nathaniel realizes that salaried positions, even with additional commission, might offer more financial security and potentially higher earnings compared to commission-only models.

It's crucial to make an informed decision about a parameter when evaluating job offers, as certain terms such as the advertised average earning can be misleading. For example, car dealerships might advertise their vehicles' mileage as being more efficient on average, while tutoring services might claim high success rates. Salary negotiations have also shown to significantly impact one's income, potentially increasing it by over 7% for those who successfully negotiate.

Additionally, it's important to recognize that wage discrepancies may still exist due to outdated attitudes about role assignments based on gender. These discrepancies not only occur in industries like manufacturing but also in professions requiring higher education, such as life sciences, mathematics, and computer sciences, where wage gaps between genders are evident even among PhD recipients.

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