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Sharon Is a Manufacturer's Representative Selling Office Furniture Directly to Businesses

Question 119

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Sharon is a manufacturer's representative selling office furniture directly to businesses. She receives a monthly salary of $2,000 plus a 2.2% commission on sales exceeding her quota of $150,000 per month. a) What are her earnings for a month in which she has $227,000 in sales? b) If her average monthly sales are $235,000, what straight commission rate would generate the same average monthly earnings as her current basis of remuneration?

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a) $3,694....

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