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Choose the method of pay that would result in the most earnings for one month on sales of $60,000. A. Straight commission of 6% on all sales. B.Monthly salary of $1,500 plus 3% commission on all sales C. Graduated commission 4% on the first $50,000 in sales and 10% on anything over that. D. Graduated commission of 5% on the first $40,000 in sales on 9% on anything over that.

Brandon Scott

in Business

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Theresa Perry on July 16, 2018

A) 6% of 60000 = $3,600 (b) 1500 + .03(60000) = 1500 + 1800 = $3,300 c) the 4% of 50000 = .04 x 50000 = 2000, 10% of the remaining $10,000 ($60,000-$50000) = (.1x10000) = 1000. Together, you would have $3,000 d) 5% of the 40,000 .05 x 40000= 2000, Then .09 of the remaining to 20,000 (60,000-40,000) = ,09 x 20000 = 18002000 + 1800 = $3,800 Answer d. provides the largest income.


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