Variable Earnings Answers

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Choose the method of pay that would result in the most earnings for one month on sales of $40,000.

A
Straight commission of 7.5% on all sales.
B
Monthly salary of $1,600 plus 2.5% commission on all sales.
C
Graduated commission of 5% on the first $30,000 in sales and 6% on anything over that.
D
Graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.
3

Choose the method of pay that would result in the most earnings for one month on sales of $73,620.

A
Straight commission of 6% on all sales.
B
Monthly salary of $3,000 plus 2% commission on all sales.
C
Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.
D
Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.

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