Question

Choose the method of pay that would result in the most earnings for one month on sales of $73,620. a. Straight commission of 6% on all sales. b. Monthly salary of $3,000 plus 2% commission on all sales. c. Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that. d. Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.

Answer 1

a. 0.06(73,620) = 4417.20 pay on straight commission of 6%
b. 3000 + 0.02(73,620) = 3000 + 1472.40 = 4472.40 (salary + 2% com)
c. 0.04(50,000) + 0.09(73620 - 50,000) = 2000 + 2125.80 = 4125.80
d. 0.05(35,000) + 0.07(73620 - 35,000) = 1750 + 2703.40 = 4453.40

most earnings would be : B. monthly salary + 2% commission

Answer 2

The method of pay that results in the most earnings is the second method of pay

In order to determine which method of pay would result in the most earnings ,  the value of each method would be determined

Value of the first option

6% commission on all sales = 6% x  $73,620.

0.06 x  $73,620. = $4,417.20

Value of the second option

Monthly salary of $3,000 plus 2% commission on all sales =  $3,000 + (2% x  $73,620)

$3,000 + (0.02% x  $73,620)

= $3000 + $1472.40

= $4472.40

Value of the third option

Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.

= (4% x $50,000) + (9% x $23,620)

= $2000 + $2125.80

= $4125.80

Value of the fourth option

Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.

= (5% x$35,000) + (7% x $38,620)

= $1750 + $2703.40

= $4,453.40

A similar question is solved here: https://brainly.com/question/17181309?referrer=searchResults