Jones Co. pays its employees on a graduated commission scale: 2% on first $30,000; 3% on sales from $30,000 to $60,000; and 5% on sales greater than $60,000. If Rick Wise, an employee of Jones, had sales of $92,000, what commission did he earn?

Question

Mathematics

Daniela Dean

16 August, 17:29

Jones Co. pays its employees on a graduated commission scale: 2% on first $30,000; 3% on sales from $30,000 to $60,000; and 5% on sales greater than $60,000. If Rick Wise, an employee of Jones, had sales of $92,000, what commission did he earn?

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Walker Meyer · Answer 1

We need to separate his total earnings out into the different categories:

Category 1 (2%) : 30,000

Category 2 (3%) : 60,000-30,000 = 30,000

Category 3 (5%) : 92,000-60,000 = 32,000

To calculate a percentage we multiply by that percentage divided by 100.

Now we can work out the commissions:

1) 30,000*0.02 = $600

2) 30,000*0.03 = $900

3) 32,000*0.05 = $1600

Adding these together, we get $3100