the earnings of two employees are given below: employee a: 6% commission on all sales employee b: 4%…

the earnings of two employees are given below: employee a: 6% commission on all sales employee b: 4% commission on the first $80,000 and 8% on anything over $80,000 how much more does a straight - commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200 please select the best answer from the choices provided

the earnings of two employees are given below: employee a: 6% commission on all sales employee b: 4% commission on the first $80,000 and 8% on anything over $80,000 how much more does a straight - commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate Employee A's earnings

Employee A has a 6% commission on $100,000 sales. So earnings of Employee A are $0.06\times100000 = 6000$.

Step2: Calculate Employee B's earnings

Employee B has 4% commission on first $80,000 and 8% on amount over $80,000. The amount over $80,000 is $100000 - 80000=20000$. Earnings of Employee B are $0.04\times80000+0.08\times20000=3200 + 1600=4800$.

Step3: Calculate the difference

The difference in earnings is $6000 - 4800 = 1200$.

Answer:

A. $1,200