83
QuizMultiple Choice

Topic Test

Question 83 • 26.27 TCEC FINANCIAL LIT

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee’s total earnings on $81,500 in sales?

Answer
A
(0.035)(50,000) + (0.065)(81,500)
B
(0.035)(50,000) + (0.065)(31,500)
C
(0.35)(50,000) + (0.65)(31,500)
D
(3.5)(50,000) + (6.5)(31,500)

Explanation

The first $50,000 earns 3.5%, so that portion is represented by (0.035)(50,000). Sales above $50,000 total $81,500 − $50,000 = $31,500, and those earn 6.5%, represented by (0.065)(31,500). Therefore, choice B gives the employee’s total earnings.

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