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AssignmentMultiple Choice

Variable Earnings

Question 1 • FL-2102373-Personal Finance and Money Management Honors

Dee started a new sales position that pays $1,800 per month plus 8% commission on any sales above $12,000. In their first month, Dee sold $82,570 worth of products. What is Dee’s gross pay for that first month?

Answer
A
$2,760
B
$5,501.60
C
$6,605.60
D
$7,445.60

Explanation

Dee earns commission only on sales above $12,000. The amount above that threshold is $82,570 − $12,000 = $70,570, and 8% of $70,570 is $5,645.60. Add the $1,800 monthly base pay: $5,645.60 + $1,800 = $7,445.60. Dee’s gross pay is $7,445.60, choice D.

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