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1 June, 13:44

The earnings of two employees are given below:

Employees A: 6% commission on all sales.

Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000.

how much more does a straight commission employee make then the graduated commission employee for sale of $100,000?

a.$1,200

b.$1,600

c.$2,000

d.$3,200

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Answers (1)
  1. 1 June, 17:36
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    The answer is a. $1,200. Employee A has 6% commission on all sales. For sale of $100,000 which is 100%, x is the commission of 6%. $100,000 : 100% = x : 6%. x = $100,000 * 6% : 100% = $6,000. Employee B has 4% commission on the first $80,000 and 8% on anything over $80,000. For sale of $80,000 which is 100%, x is the commission of 4%. $80,000 : 100% = x : 4%. x = $80,000 * 4% : 100% = $3,200. For sale of $20,000 which is 100%, x is the commission of 8%. $20,000 : 100% = x : 8%. x = $20,000 * 8% : 100% = $1,600. The total commission for Employee B is $3,200 + $1,600 = $4,800. The difference between Employees A and B is: $6,000 - $4,800 = $1,200.
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