Question

Choose the method of pay that would result in the most earnings for one month on sales of 73,620

Answer 1

Answer:

Step-by-step explanation:

For option A: Earning = 0.06 x $73,620 = $4,417.20

For option B: Earning = $3,000 + 0.02 x $73,620 = $3,000 + $1,472.40 = $4,472.40

For option C: Earning = 0.04 x $50,000 + 0.09 x ($73,620 - $50,000) = $2,000 + 0.09 x $23,620 = $2,000 + $2,125.80 = $4,125.80

For option D: Earning = 0.05 x $35,000 + 0.07 x $(73,620 - 35,000) = $1,750 + 0.07 x $38,620 = $1,750 + $2,703.4 = $4,453.40

Therefore, the method that yields the most earning is monthly salary of $3,000 plus 2% commission on all sales .