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.

The method of pay that results in the most earnings is the second method of pay

In order to determine which method of pay would result in the most earnings ,  the value of each method would be determined

Value of the first option

6% commission on all sales = 6% x  $73,620.

0.06 x  $73,620. = $4,417.20

Value of the second option

Monthly salary of $3,000 plus 2% commission on all sales =  $3,000 + (2% x  $73,620)

$3,000 + (0.02% x  $73,620)

= $3000 + $1472.40

= $4472.40

Value of the third option

Graduated commission of 4% on the first $50,000 in sales and 9% on anything over that.

= (4% x $50,000) + (9% x $23,620)

= $2000 + $2125.80

= $4125.80

Value of the fourth option

Graduated commission of 5% on the first $35,000 in sales and 7% on anything over that.

= (5% x$35,000) + (7% x $38,620)

= $1750 + $2703.40

= $4,453.40

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