Question

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. $2,000 3% on all sales 7% on all sales 5% on the first $40,000 8% on anything over $40,000 December 4. 4 5. 6 5. 2 January 2003. 5 3. 85 3. 6 February 2004. 7 4. 9 4. 4 Who had the largest dollar amount in sales for the month of December? a. The salary plus commission employee. B. The straight commission employee. C. The graduated commission employee. D. They each had the same dollar amount in sales.

Answer 1

The earnings of the three employees are X=$2,135, Y=$392, Z=$260.

What is the commission?

The commission is basically the amount of service charge which is given by the employer to their employee in addition to his income.

Let, the three employees be X, Y, and Z.

Given that,

Employee X earns $2,000 with 3% on all sales.

Employee Y earns 7% on all sales.

Employee Z earns 5% on the first $40,000, and 8% for sales over $40,000.

The table is shown in the image below about the sales of December, January, and February.

Computation of earning:

Earning in December are as follows:

Employee X:

$=\ 2000+3\%(\ 4,400)\\ = \ 2,132.$

Employee Y:

$7\%(\ 5,600) = \ 392$

Employee Z:

$5\%(\ 5,200) = \ 260$

Hence, employee A has the largest amount of earnings in the month of December.

Therefore, option A is correct, where A is the salary plus commission employee.

Learn more about commission, refer:

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