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?
(a) $1,200
(b) $1,600
(c) $2,000
(d) $3,200

Option A. $1,200

Step-by-step explanation:

Employee A earns commission on all sales = 6%

Employee B earns commission on the first $80,000 = 4%

and above 80,000 the commission will be 8%

Employee A earns commission = 6% of 100,000

                                                    = 0.06 × 100,000

                                                    = $6,000

Employee B earns commission on $80,000 = 4% of 80,000

                                                                         = 0.04 × 80,000

                                                                         = $3,200

and on $20,000 Employee B earns = 8% of 20,000

                                                           = 0.08 × 20,000

                                                           = $1,600

Total earning of employee B = 3,200 + 1,600 = $4,800

The difference between the commission of both employees = 6,000 - 4800  = $1200

Option A. $1,200 is the answer.

A. a. $1,200

Step-by-step explanation:

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step-by-step explanation:

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