Question

leo corporation pays it employees on a graduated commission scale: 6% on 1st $40000 sales; 7% on sales above $40000 to $80000 and 9% ons sales greater than $80000. Bernie had sales of $105,000. his commission is:

Answer 1

$105,000 - 40,000 = $65,000 This is the total sales minus the first commission scale. The $65,000 is subject to the second commission scale since it falls between above $40,000 to $80,000. Therefore, the commission is calculated as follows:

($40,000)(0.06) + ($65,000)(0.07) = $2400 + $4550 = $6950 commission