Nitin is paid on a graduated commission scale. His base salary is $250 per week and he receives commission at the rate of 2.5% for the first $5,000 of sales in a week, 4% on the next $10,000, and 4.5% on all further sales. How much will Nitin earn in a week in which his sales are $30,000?
A) $1,200
B) $1,350
C) $1,450
D) $1,600
E) $1,000

Question

Quizplus · Accepted Answer

Nitin's earnings include his base salary and commission. For $30,000 in sales:  - First $5,000: 2.5% commission = $125  - Next $10,000: 4% commission = $400  - Remaining $15,000: 4.5% commission = $675  Total commission = $125 + $400 + $675 = $1,200  Total earnings = Base salary $250 + $1,200 = $1,450.

Nitin Is Paid on a Graduated Commission Scale