Question 197 • Financial Math - MA2007
For January, the salary-plus-commission employee earned $3,500, including a $2,000 salary, so sales were ($3,500 − $2,000) ÷ 0.03 = $50,000. The straight-commission employee’s sales were $3,850 ÷ 0.07 = $55,000. The graduated-commission employee earned $2,000 on the first $40,000 in sales, leaving $1,600 earned at 8%; that means $20,000 in additional sales, or $60,000 total. Therefore, the graduated-commission employee had the largest sales amount.
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