Holman Company pays each of its three salespeople a base salary of $1,000 per month plus a commission of 10 percent of their sales.The base salary is paid each month as incurred; the 10 percent commission is paid the month following the month of sale.The total sales for the past four months are as follows: $\begin{array}{lr}
\text { June } & \$ 15,000 \
\text { July } & 22,000 \
\text { August } & 39,000 \
\text { September } & 40,000
\end{array}$
Total salary and commission cash payments for September total

Question

Holman Company pays each of its three salespeople a base salary of $1,000 per month plus a commission of 10 percent of their sales.The base salary is paid each month as incurred; the 10 percent commission is paid the month following the month of sale.The total sales for the past four months are as follows: $\begin{array}{lr}
\text { June } & \$ 15,000 \
\text { July } & 22,000 \
\text { August } & 39,000 \
\text { September } & 40,000
\end{array}$ 
Total salary and commission cash payments for September total

Quizplus · Accepted Answer

In September, the base salary is $1,000 per salesperson, totaling $3,000 for three salespeople. The commission for August sales ($39,000) is paid in September, which is 10% of $39,000, equaling $3,900. Therefore, the total payment in September is $3,000 (base salary) + $3,900 (commission) = $6,900.