Question

Ricardo Hamm is a window sales representative. He receives a graduated commission of 5% on the first $5000 of sales, 6.5% on the next $15000, and 7% on all sales over $20000. What is his commission on $28538 in sales?

a
$597.66
b
$5279.53
c
$1572.66
d
$1822.66

Answer 1

..$5000 in sales: commission = (5000*5)/100= $250

$15,000 in subsequent sales: commission = (15,000*6.5)/100=$975

he sold for $23538, he already received commission 250+975=$1225

he receives 7% for sales above 20,000

28538-20000=$8538

he receives 7% = (8538*7)/100=$597.66

total commissions: 250+975+597.66=$1822.66

Explanation: