Question

A company pays 12% commission on sales less than $7,000.00. 14% commission on sales

between $7,000.00 and $15,000.00. And 15% commission on sales greater than $15,000.00.
What is the commission on $19,480.00

Answer 1

The total commission is: $840 + $1,120 + $672 = $2,632

Explanation:

Multi-Level Commissions

For sales less than $7,000, a company pays a 12% commission.

For sales between $7,000 and $15,000, the company pays 14%.

For sales greater than $15,000, the company pays 15%.

Let's calculate the commission on sales of $19,480.

For the first $7,000, the commission is:

12*7,000/100 = $840

The remaining sales base is now $19,480-$7,000 = $12,480

For the portion of $8,000 between $7,000 and $15,000, the commission is:

14*$8,000/100 = $1,120

The remaining sales base is now $12,480 - $8,000= $4,480

This portion gets the final 15%:

15*$4,480/100 = $672

The total commission is: $840 + $1,120 + $672 = $2,632