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Scorpion4ik [409]
2 years ago
8

Choose the method of pay that would result in the most earnings for one month on sales of $40,000. A. Straight commission of 7.

5% on all sales. B. Monthly salary of $1,600 plus 2. 5% commission on all sales. C. Graduated commission of 5% on the first $30,000 in sales and 6% on anything over that. D. Graduated commission of 4% on the first $25,000 in sales and 8% on anything over that. Please select the best answer from the choices provided A B C D.
Business
1 answer:
sleet_krkn [62]2 years ago
8 0

The method of pay that would result in the most earnings is method 1.

<h3>What method of pay would result in the most earnings?</h3>

In order to determine which method of pay would yield the highest earnings, the total amount that would be earned using each method of pay has to be determined.

Method A = 7.5% x $40,000 = $3000

Method B = $1600 + (2.5% x $40,000) = $2,600

Method C = (5% x $30,000) + (6% x 10,000) = $2,100

Method D = (4% x $25,000) + (8% x $15,000) = $2,200

To learn more about pay, please check: brainly.com/question/11946555

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Results are below.

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<u></u>

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Direct material= 1,000 + 42,000 + 750

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Direct labor=  $125,000

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Manufacturing overhead= $115,000

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7) <u>Period costs are not directly tied to the production process</u>. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

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