Calculate the total gross earnings based on the given compensation structure.

Answer:A medical supplies sales representative earns a weekly base salary of

\$600

. She also earns a

4\%

commission on her first

\$10,000

in sales for the week, and a

7\%

commission on any sales amount exceeding

\$10,000

. If she achieves

\$18,000

in total sales this week, her total gross earnings will be

\$【1560】

1,560

To find the total gross earnings, we must add the base salary to the commissions earned from each tier. The base salary is

\$600

. The first commission tier is

4\%

of the first

\$10,000

, which is

\$400

. The second tier is

7\%

of the remaining

\$8,000

in sales (since

\$18,000 - \$10,000 = \$8,000

), which is

\$560

. Adding these three components together gives

\$600 + \$400 + \$560 = \$1,560

Identify the fixed base salary.

The base salary is

\$600

This is a guaranteed amount earned regardless of the sales volume achieved.

Calculate the commission on the first

\$10,000

of sales.

0.04 \times \$10,000 = \$400

The representative earns a

4\%

commission on all sales up to the

\$10,000

threshold.

Determine the amount of sales that exceeds the

\$10,000

threshold.

\$18,000 - \$10,000 = \$8,000

The higher commission rate of

7\%

only applies to the portion of sales above

\$10,000

Calculate the commission on the sales exceeding

\$10,000

0.07 \times \$8,000 = \$560

This applies the

7\%

rate to the remaining

\$8,000

in sales.

Add the base salary and all commissions to find the total gross earnings.

\$600 + \$400 + \$560 = \$1,560

Total gross earnings are the sum of the fixed base salary and all variable commission tiers.

Calculating total gross earnings using a combination of a fixed base salary and a tiered commission structure.

Question