Sales Commission (Part 1): Some companies pay their sales re…
Sales Commission (Part 1): Some companies pay their sales representatives (sales-reps) in a “graduated commission” plan. Suppose a company pays their employees graduated commission in the following way: If total sales is over— but not over— the commission is: $0 $5,000 2% of the amount over $0 $5,000 $10,000 $100 plus 4% of the amount over $5,000 $10,000 $20,000 $300 plus 5% of the amount over $10,000 $20,000 no limit $800 plus 6% of the amount over $20,000 (A) How much money would a sales-rep earn in commission with $12,000 in sales? (B) What would be the effective commission rate for part (A)? (C) Write a sentence or two explaining what the effective commission rate from part (B) means in this context.