Question

you are the sales manager for solar panel company. you receive a commission based on the total sales of all the salespeople you manage. your commission is 2 percent of the first $80,000 of sales, 4 percent of the next $80,000, and 5 percent of all sales over $160,000. What is your commission for a month in which your salespeople sold $242,100 in solar panels?

Answer 1

The total commission is $8905

Explanation:

The commission on first $80000 = 2%

The commission on next $80000 = 4%

The commission on the sales of more than $160000 = 5%

Now we have to calculate the total commission on the amount of $242100. Let divide the amount in three parts, $80000 + $80000 + $82100 = 242100

Now total commission = $80000×2% + $80000 ×4% + $82100×5%

Total commission = $8905