14
QuizMultiple Choice

Planning for the Cost of College — Unit test

Question 14 • 2027 Ignite Financial Literacy-Personal Finance - EL3403

The table below shows the earnings, in thousands of dollars, for three different commissioned employees. $2,000 + 3% on all sales7% on all sales5% on the first $40,000 + 8% on anything over $40,000December4.45.65.2January3.53.853.6February4.74.94.4Who had the largest dollar amount in sales for the month of December?

Answer
A
The salary plus commission employee.
B
The straight commission employee.
C
The graduated commission employee.
D
They each had the same dollar amount in sales.

Explanation

For December, the salary-plus-commission employee earned $4,400, so $2,000 + 0.03S = $4,400 gives sales of $80,000. The straight-commission employee’s $5,600 earnings give 0.07S = $5,600, also $80,000. For the graduated plan, $5,200 = $2,000 on the first $40,000 plus 8% of sales above $40,000, which gives total sales of $80,000. They each had the same dollar amount in sales.

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