Choose the method of pay that would result in the most earnings for one month on sales of \( \$ 60,000 \). a. Straight commission of \( 6 \% \) on all sales. b. Monthly salary of \( \$ 1,500 \) plus \( 3 \% \) commission on all sales. c. Graduated commission of \( 4 \% \) on the first \( \$ 50,000 \) in sales and \( 10 \% \) on anything over that. d. Graduated commission of \( 5 \% \) on the first \( \$ 40,000 \) in sales and \( 9 \% \) on anything over that. Please select the best answer from the choices provided A

1. **Straight commission:** The total commission is calculated as \[ 0.06 \times 60{,}000 = 3{,}600. \] 2. **Monthly salary plus commission:** The total pay is the sum of a fixed salary and a commission: \[ 1{,}500 + (0.03 \times 60{,}000) = 1{,}500 + 1{,}800 = 3{,}300. \] 3. **Graduated commission (first \( \$50{,}000 \) at \( 4\% \), remainder at \( 10\% \)):** Commission for the first \( \$50{,}000 \): \[ 0.04 \times 50{,}000 = 2{,}000. \] Commission for the remaining \( \$10{,}000 \) (since \( 60{,}000 - 50{,}000 = 10{,}000 \)): \[ 0.10 \times 10{,}000 = 1{,}000. \] Total commission: \[ 2{,}000 + 1{,}000 = 3{,}000. \] 4. **Graduated commission (first \( \$40{,}000 \) at \( 5\% \), remainder at \( 9\% \)):** Commission for the first \( \$40{,}000 \): \[ 0.05 \times 40{,}000 = 2{,}000. \] Commission for the remaining \( \$20{,}000 \) (since \( 60{,}000 - 40{,}000 = 20{,}000 \)): \[ 0.09 \times 20{,}000 = 1{,}800. \] Total commission: \[ 2{,}000 + 1{,}800 = 3{,}800. \] Comparing all results: - Option a: \( \$3{,}600 \) - Option b: \( \$3{,}300 \) - Option c: \( \$3{,}000 \) - Option d: \( \$3{,}800 \) The highest earnings come from option d.