Question

Wendy Epstein, a sales representative, earns an annual salary of $30,500 and receives a commission on that portion of her annual sales that exceeds $195,000. The commission is 7.0% on all sales up to $64,000 above the quota. Beyond that amount, she receives a commission of 9.0%. Her total sales for the past year were $401,000. Compute the following amounts:

Answer 1

She receives 7 % on all sales up to $64,000 above the quota.
$195,000 + $64,000 = $259,000
$401,000 - $259,000 = $142,000 ( with a commission of 9 % )
$64,000 * 0.07 = $4,480
$142,000 * 0.09 = $12,780
$30,500 + $4,480 + $12,780 = $47,760
Answer: Her total annual income is: $47,760.