Determine the total gross earnings for the month based on the given compensation structure… — Armed Services Vocational Aptitude Battery (ASVAB)

Determine the total gross earnings for the month based on the given compensation structure.

Cevap:During the month of October, a medical equipment consultant recorded total sales of

\$45,000

. His compensation package includes a guaranteed monthly base salary of

\$1,200

. On top of this base, he earns a

5\%

commission on the first

\$20,000

of his sales, and an

8\%

commission on all sales volume beyond that initial

\$20,000

. Based on these figures, the consultant's total gross pay for October is

\$【4200】

The consultant's total gross pay is $4,200.

The total gross pay is found by isolating the sales into two tiers: the first

20,000 earns a 5% commission (

1,000) and the remaining

25,000 earns an 8% commission (

2,000). Adding these two commissions to the

1,200 base salary yields a total gross pay of

4,200.

Calculate the commission earned on the first tier of sales.

\$20,000 \times 0.05 = \$1,000

The consultant earns a 5% commission on the initial $20,000 of sales.

Determine the amount of sales that qualify for the second commission tier.

\$45,000 - \$20,000 = \$25,000

The higher commission rate only applies to the sales volume exceeding the first $20,000.

Calculate the commission earned on the second tier of sales.

\$25,000 \times 0.08 = \$2,000

The consultant earns an 8% commission on the remaining $25,000 of sales.

Sum the base salary and both commission amounts to find the total gross pay.

\$1,200 + \$1,000 + \$2,000 = \$4,200

Total earnings are the sum of the guaranteed salary and all commissions earned.

Calculating total earnings involving a base salary and a multi-tiered commission structure.

Soru