Question

The earnings of two employees are given below: Employee A: 6% commission on all sales Employee B: 4% commission on the first $80,000 and 8% on anything over $80,000 How much more does a straight commission employee make than the graduated commission employee for sales of $100,000? a. $1,200 b. $1,600 c. $2,000 d. $3,200

Answer 1

The answer is A becasuse 6% of 100,000 is 6000 while through the other equations you would only get 4800

Answer 2

Step $1$

Find the earnings of Employee A

For sales of $$100,000$

$Earning\ A= \frac{6}{100}*100,000 \\ \\ Earning\ A=6,000\ dollars$

Step $2$

Find the earnings of Employee B

For sales of $$100,000$

a) on the first $$80,000$

$Earning\ B1= \frac{4}{100}*80,000 \\ \\ Earning\ B1=3,200\ dollars$

b) for the rest $$20,000$

$Earning\ B2= \frac{8}{100}*20,000 \\ \\ Earning\ B2=1,600\ dollars$

c) Total earnings of Employee B

$Earning\ B=3,200+1,600=4,800\ dollars$

Step $3$

Find the difference

$Earning\ A-Earning\ B=6,000-4,800\\ =1,200\ dollars$

therefore

the answer is the option

a. $$1,200$