Monday, March 1, 2010

Sale Commission

Jennifer sells major appliances. She is paid a monthly salary of $1,600, plus a commission of 5% on the first $2,000 of monthly sales and 10% on the rest of her monthly sales over $2,000.

a. What is Jennifer's income for a month having sales of $5,938.50? Explain.

b. What if Jennifer worked at the same job but was paid a monthly salary of $1,000 plus a 15% commission on her monthly sales. Would she have paid more or less than the amount in part A for the same monthly sales? Explain.

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