Answer:
Option B is correct. The straight commission employee.
Step-by-step explanation:
Three different commissioned employees.
- Emp 1 (Salary Plus commission employee) = $2,000 + 3% on all sales
- Emp 2 (Straight commission employee) = 7% on all sales
- Emp 2 (graduated commission employee) = 5% on the first $40,000 + 8% on anything over $40,000
# Below table shows the earnings (in thousands of dollars)
Month Emp 1 Emp 2 Emp 3
December 4.4 5.6 5.2
January 3.5 3.85 3.6
February 4.7 4.9 4.4
Let the sale of Emp 1 be $x
2,000 + 3% of x = 4400
0.03x=4400-2000
x=$73,333
Let the sale of Emp 2 be $y
7% of y = 5600
y=$80,000
Let the sale of Emp 3 be $z
5% of $40,000 + 8% of (z-40000) = 5200
2000 + 0.08z - 3200 = 5200
0.08z = 5200+3200 - 2000 = 6200
z=$77,500
Therefore, y>z>x
y = $80,000 would be greatest sale in December month.
y is straight commission employee.
Thus, Option B is correct. The straight commission employee.
