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?

Respuesta :

A: (100000 x 0.06) = 6000

B: (80000 x 0.04) + (20000 x 0.08) =4800

A makes $1200 more than b

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Employee A makes $1,200 more than Employee B for sales of $100,000.

The earnings of Employee A are:

= Commission rate x Sales

= 6% x 100,000

= $6,000

The earnings of employee B are:

= Commission on first $80,000 + Commission on anything above $80,000

= (4% x 80,000) + (8% x (100,000 - 80,000)

= 3,200 + (8% x 20,000)

= $4,800

The difference is:

= Employee A commission - Employee B commission

= 6,000 - 4,800

= $1,200

In conclusion, Employee A makes $1,200 more than Employee B for sales of $100,000.

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