Choose the method of pay that would result in the most earnings for one month on sales of $60,000. a. Straight commission of 6% on all sales. b. Monthly salary of $1,500 plus 3% commission on all sales. c. Graduated commission of 4% on the first $50,000 in sales and 10% on anything over that. d. Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.
Question
Answer:
The method of pay that would result in the most earnings is: Option d. graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.How to find the percentage from the total value?Suppose the value of which a thing is expressed in percentage is "a'Suppose the percent that considered thing is of "a" is b%Then since percent shows per 100 (since cent means 100), thus we will first divide the whole part in 100 parts and then we multiply it with b so that we collect b items per 100 items(that is exactly what b per cent means).Thus, that thing in number is [tex]\dfrac{a}{100} \times b[/tex]We're specified that:One month sales of $60,000 occurs.Calculating the earnings from all the options:Option a: straight commission of 6% on all sales.That means, we get:Earning = 6% of 60,000 = [tex]\dfrac{60000}{100} \times 6 = 3600[/tex] (in dollars)
Option b: monthly salary of $1,500 plus 3% commission on all sales.That means:Earning = 1500 + 3% of 60,000 = [tex]1500 +\dfrac{60000}{100} \times 3 = 1500 + 1800 = 3300[/tex] (in dollars).Option c : graduated commission of 4% on the first $50,000 in sales and 10% on anything over thatThat means, we get:Earning = 4% of 50,000 + 10% of 10,000 (as total 60,000 dollars sales was done).Earning = [tex]\dfrac{50000}{100} \times 4 + \dfrac{10000}{100} \times 10 = 2000 + 1000 = 3000[/tex] (in dollars)Option d: graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.That means:Earning = 5% of 40,000 + 9% of 20,000 (as 40000 + 20000 = 60000)or, we get:Earning = [tex]\dfrac{40000}{100} \times 5 + \dfrac{20000}{100} \times 9 = 2000 + 1800 = 3800[/tex] (in dollars).Thus, option D provides the method for max earning.Thus, the method of pay that would result in the most earnings is: Option d. graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.Learn more about percent here:
solved
general
10 months ago
9949