choose the method of pay that would result in the most earnings for one month on sales of $60,000.\na…
choose the method of pay that would result in the most earnings for one month on sales of $60,000.\na. straight commission of 6% on all sales.\nb. monthly salary of $1,500 plus 3% commission on all sales.\nc. graduated commission of 4% on the first $50,000 in sales and 10% on anything over that.\nd. graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.\nplease select the best answer from the choices provided\no a\no b\no c\no d
Answer
Explanation:
Step1: Calculate earnings for option a
The commission rate is 6% and sales are $60,000. Earnings = 0.06×60000 = 3600$.
Step2: Calculate earnings for option b
Base - salary is $1500. Commission on first $50,000 is 3% and on the remaining ($60000 - 50000) is 10%. Commission on first $50,000 = 0.03×50000 = 1500. Commission on remaining $10,000 = 0.1×10000 = 1000. Total earnings = 1500+1500 + 1000=4000.
Step3: Calculate earnings for option c
Commission on first $50,000 is 4% and on the remaining ($60000 - 50000) is 9%. Commission on first $50,000 = 0.04×50000 = 2000. Commission on remaining $10,000 = 0.09×10000 = 900. Total earnings = 2000+900 = 2900.
Step4: Calculate earnings for option d
Commission on first $40,000 is 5% and on the remaining ($60000 - 40000) is 9%. Commission on first $40,000 = 0.05×40000 = 2000. Commission on remaining $20,000 = 0.09×20000 = 1800. Total earnings = 2000+1800 = 3800.
Answer:
B. Monthly salary of $1,500 plus 3% commission on all sales up to $50,000 and 10% on anything over that.