Question
The earnings of two employees are given below: Employee A: \( 6 \% \) commission on all sales Employee B: \( 4 \% \) commission on the first \( \$ 80,000 \) and \( 8 \% \) on anything over \( \$ 80,000 \) How much more does a straight commission employee make than the graduated commission employee for sales of \( \$ 100,000 \) ? a. \( \$ 1,200 \) b. \( \$ 1,600 \) c. \( \$ 2,000 \) d. \( \$ 3,200 \)
Ask by Norton Santiago. in the United States
Mar 11,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The straight commission employee makes \$1,200 more than the graduated commission employee.
Solution
1. For Employee A (straight commission):
\[
\text{Commission} = 6\% \times \$100,\!000 = 0.06 \times 100,\!000 = \$6,\!000.
\]
2. For Employee B (graduated commission):
- Commission on the first \$80,000:
\[
4\% \times \$80,\!000 = 0.04 \times 80,\!000 = \$3,\!200.
\]
- Commission on the remaining \$20,000:
\[
8\% \times \$20,\!000 = 0.08 \times 20,\!000 = \$1,\!600.
\]
- Total commission:
\[
\$3,\!200 + \$1,\!600 = \$4,\!800.
\]
3. The difference in commission is:
\[
\$6,\!000 - \$4,\!800 = \$1,\!200.
\]
Thus, the straight commission employee makes \(\$1,\!200\) more than the graduated commission employee.
Answered by UpStudy AI and reviewed by a Professional Tutor
Like
error msg
Explain 
Simplify this solution Mind Expander
Let's calculate the earnings of both employees for sales of $100,000. For Employee A: - Commission = \( 6\% \) of \( 100,000 = 0.06 \times 100,000 = 6,000 \) For Employee B: - Commission on the first \( 80,000 \) = \( 4\% \) of \( 80,000 = 0.04 \times 80,000 = 3,200 \) - Commission on the remaining \( 20,000 \) = \( 8\% \) of \( 20,000 = 0.08 \times 20,000 = 1,600 \) - Total Commission for Employee B = \( 3,200 + 1,600 = 4,800 \) Now, let's find the difference in earnings: - Difference = \( 6,000 - 4,800 = 1,200 \) The straight commission employee makes \( 1,200 \) more than the graduated commission employee. The answer is: a. \( \$ 1,200 \)
