Therefore, the employee with the largest dollar amount in sales for the month of December is the graduated commission employee (C).
Salary plus commission employee:
Salary: $2,000
Commission: 3% on all sales
December sales: $4,000 (4 * $1,000)
Total earnings = Salary + Commission = $2,000 + ($4,000 * 3%) = $2,000 + $120
= $2,120
Straight commission employee:
Commission: 7% on all sales
December sales: $5,200 (5.2 * $1,000)
Total earnings = Commission = $5,200 * 7% = $5,200 * 0.07
= $364
Graduated commission employee:
5% on the first $40,000
8% on anything over $40,000
December sales: $6,000 (6 * $1,000)
Total earnings = ($40,000 * 5%) + (($6,000 - $40,000) * 8%)
= $2,000 + $448
= $2,448
The table below shows the earnings, in thousands of dollars, for three different commissioned employees. $2,000 3% on all sales 7% on all sales 5% on the first $40,000 8% on anything over $40,000 December 4. 4 5. 6 5. 2 January 2003. 5 3. 85 3. 6 February 2004. 7 4. 9 4. 4 Who had the largest dollar amount in sales for the month of December? a. The salary plus commission employee. B. The straight commission employee. C. The graduated commission employee. D. They each had the same dollar amount in sales.