Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

a.

Straight commission of 6% on all sales.

b.

Monthly salary of $1,500 plus 3% commission on all sales.

c.

Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that.

d.

Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.

Question

Mathematics

Trevor Russo

21 September, 05:18

Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

a.

Straight commission of 6% on all sales.

b.

Monthly salary of $1,500 plus 3% commission on all sales.

c.

Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that.

d.

Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.

+4

Answers (1)

Know the Answer?

Curtis Robbins · Answer 1

A) 60,000 * 6% = 3,600

b) 1500 + (60,000*3%) = 1500 + 1800 = 3,300

c) (50,000 * 4%) + 10% (60,000 - 50,000) = 2,000 + 1,000 = 3,000

d) (40,000 * 5%) + 9% (60,000-40,000) = 2,000 + 1,800 = 3,800

The method that earned the most in one month sales of $60,000 is Choice D. Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.