Leo Corporation pays its employees on a graduated commission scale: 6% on the first $40,000 in sales, 7% on sales from $40,000 to $80,000, and 9% on sales greater than $80,000. Bernie Kaminsky had sales of $105,000. His commission is:

Question

Quizplus · Accepted Answer

- Bernie's sales of $105,000 fall into the third commission rate category (sales greater than $80,000)
- For the first $40,000, Bernie earns 6%, or $2,400 commission (40,000 * 0.06)
- For the next $40,000, Bernie earns 7%, or $2,800 commission (40,000 * 0.07)
- For the remaining $25,000 ($105,000 - $80,000), Bernie earns 9%, or $2,250 commission (25,000 * 0.09)
- Bernie's total commission is the sum of these amounts: $2,400 + $2,800 + $2,250 = $7,450

Leo Corporation Pays Its Employees on a Graduated Commission Scale