choose the method of pay that would result in the most earnings for one month on sales of $73,620.\na…

choose the method of pay that would result in the most earnings for one month on sales of $73,620.\na. straight commission of 6% on all sales.\nb. monthly salary of $3,000 plus 2% commission on all sales.\nc. graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.\nd. graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.\nplease select the best answer from the choices provided\na\nb\nc\nd

choose the method of pay that would result in the most earnings for one month on sales of $73,620.\na. straight commission of 6% on all sales.\nb. monthly salary of $3,000 plus 2% commission on all sales.\nc. graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.\nd. graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.\nplease select the best answer from the choices provided\na\nb\nc\nd

Answer

Explanation:

Step1: Calculate earnings for option a

Earnings = 6% of $73,620 = 0.06×73620 = 4417.2$

Step2: Calculate earnings for option b

Base - salary is $3000. Commission = 2% of $73,620 = 0.02×73620 = 1472.4$. Total earnings = 3000 + 1472.4 = 4472.4$

Step3: Calculate earnings for option c

Commission on first $50,000 = 4% of $50,000 = 0.04×50000 = 2000$. Amount over $50,000 is $73,620−50,000 = 23,620$. Commission on amount over $50,000 = 9% of $23,620 = 0.09×23620 = 2125.8$. Total earnings = 2000 + 2125.8 = 4125.8$

Step4: Calculate earnings for option d

Commission on first $35,000 = 5% of $35,000 = 0.05×35000 = 1750$. Amount over $35,000 is $73,620−35,000 = 38,620$. Commission on amount over $35,000 = 7% of $38,620 = 0.07×38620 = 2703.4$. Total earnings = 1750+2703.4 = 4453.4$

Answer:

B. Monthly salary of $3,000 plus 2% commission on all sales.