Question

max is paid on a weekly commission bases. he is paid a base salary $340 on a weekly quota of $8000 and a commission of 4.74%on any sales in excess of the quota. (a) if max's for last week were $11340 what was its gross earning.​

Answer 1

Total income= $498.32

Explanation:

Giving the following information:

Fixed income= $340 on a weekly quota of $8000

Variable income= 4.74%on any sales above the quota

Sales= $11,340

First, we need to structure the total income formula:

Total income= 340 + 0.0474*x

x= sales over the quota

Now, for actual sales:

Total income= 340 + 0.0474*(11,340 - 8,000)

Total income= $498.32