Question

Charles Beaudry sells computer hardware for a computer firm. He is paid 4%

commission on the first $8,000 of sales, 6% on the next $10,000, and 8% on
sales over $18,000. What is his commission on $24,550?

Answer 1

$1,444

Step by Step Explanation

You have to break down the different commission rates on the total:

$24550 is the total Amount of Sales subject to commissions, which are paid at different rates:

1. $8000 x 4% = $320

2. $10000 x 6% = $600

3. Add $8000 + $10000 = $18000 and subtract from the total sales to get the last number for the 8% commission calculation.

4. $24550-$18000 = $6550 x 8% = $524

5. Add the three amounts together to get the total commission

$320+$600+$524 = $1,444