3
QuizMultiple Choice

Earning Income — Test

Question 3 • Personal Finance

The earnings of two employees are given: Employee A: 6 percent commission on all sales Employee B: 4 percent commission on the first 80 dollars comma 000 and 8 percent on anything over 80 dollars comma 000 How much more does a straight commission employee make than the graduated commission employee for sales of 100 dollars comma 000 ?

Answer
A
1 dollars comma 200
B
2 dollars comma 000
C
3 dollars comma 200
D
1 dollars comma 600

Explanation

Employee A earns 6% of $100,000, which is $6,000. Employee B earns 4% of the first $80,000 ($3,200) and 8% of the remaining $20,000 ($1,600), for a total of $4,800. The straight-commission employee makes $6,000 − $4,800 = $1,200 more, so the correct choice is $1,200.

AI-written and checked against the verified answer.

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