Martha is a regional supervisor who earns a base salary of $35,000 per year plus a 1% commission on all service contracts that she sells to existing customers.The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis.As of September 30,Martha had made $35,950 in contract sales for the third quarter.What will be her gross pay on her next pay date? (Do not round intermediate calculations.Round your answer to 2 decimal places. )
A)$1,458.33
B)$1,817.83
C)$2,053.13
D)$1,705.65

Question

Quizplus · Accepted Answer

First, we need to calculate Martha's commission for the third quarter. Martha's commission rate is 1%, so her commission for the third quarter is:

$35,950 * 0.01 = $359.50

Since commissions are paid on a quarterly basis, Martha will receive this commission on her next pay date.

Next, we need to calculate Martha's base salary for the pay period. Martha's annual salary is $35,000, so her semimonthly salary is:

$35,000 / 24 = $1,458.33

Finally, we can calculate Martha's gross pay by adding her base salary and commission:

$1,458.33 + $359.50 = $1,817.83

Therefore, the best choice is B, with a gross pay of $1,817.83.

Martha Is a Regional Supervisor Who Earns a Base Salary