Question

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 a b c d

Answer 1

Employee A makes $1,200 more than Employee B for sales of $100,000.

The earnings of Employee A are: = Commission rate x Sales

                                                 = 6% x 100,000

                                                = $6,000

The earnings of employee B are = Commission on first $80,000 + Commission on anything above $80,000

= (4% x 80,000) + (8% x (100,000 - 80,000)

= 3,200 + (8% x 20,000)

= $4,800

The difference is: = Employee A commission - Employee B commission

                                          = 6,000 - 4,800

                                           = $1,200

In conclusion, Employee A makes $1,200 more than Employee B for sales of $100,000.

Commission Rate :

The commission rate is the percentage or fixed payment associated with a certain amount of sale. For example, a commission could be 6% of sales, or $30 for each sale.

Learn more about Commission rate :

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