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: $$\begin{array} { l r }
\text { June } & 15,000 \
\text { July } & 22,000 \
\text { August } & 14,000 \
\text { September } & 40,000 \
\hline
\end{array}$$ 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: $$\begin{array} { l r } 
\text { June } & 15,000 \
\text { July } & 22,000 \
\text { August } & 14,000 \
\text { September } & 40,000 \
\hline
\end{array}$$ 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 ($14,000) is paid in September, which is 10% of $14,000, equaling $1,400. Therefore, the total payment in September is $3,000 + $1,400 = $4,400.

Holman Company Pays Each of Its Three Salespeople a Base