Question

the same average monthly earnings as 15. Julio is paid on a graduated commission scale of 5% on the first $20,000 of sales in a month. 7.5% on the next $20,000, and 10% on all additional sales. a. What is he paid for a month in which his sales are $54,880? b. What single commission rate on all sales would result in the same earnings for the month? fO200 nluan

Answer 1

Answers

• [a]

Commission calculation:
$ 0 to $ 20000 at 5%	$1,000	=20000*5%
$ 20001 to $ 40000 at 7.5%	$1,500	=20000*7.5%
$ 40001 to $ 54880 at 10%	$1,488	=+(54880-40000)*10%
Amount paid for sales of $ 54,880	$3,988	Answer

• [b]

Single Commission rate
= ($3988/$54880) x 100
= 7.3% [or 7.27%]