Choose the method of pay that would result in the most earnings for one month on sales of $60,000.

Calculate the earnings for each method on $60,000 in sales. Method D pays 5% of the first $40,000, or $2,000, plus 9% of the remaining $20,000, or $1,800, for a total of $3,800. That is more than method A ($3,600), method B ($3,300), and method C ($3,000), so the graduated commission of 5% on the first $40,000 and 9% above that earns the most.

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