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

Employee A earns 6% of $100,000, or $6,000. Employee B earns 4% of the first $80,000 ($3,200) plus 8% of the remaining $20,000 ($1,600), for a total of $4,800. The difference is $6,000 − $4,800 = $1,200, so the correct choice is $1,200.

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