Question

A graduated commission employee makes 3.5% interest on the first $50,000 in sales and 6.5% interest on all sales over $50,000. Which of the following expressions represents the employee’s total earnings on $81,500 in sales?
a.
(0.035)(50,000) + (0.065)(81,500)
b.
(0.035)(50,000) + (0.065)(31,500)
c.
(0.35)(50,000) + (0.65)(31,500)
d.
(3.5)(50,000) + (6.5)(31,500)

Answer 1

Sales over 50,000 = 81,500 − 50,000 = 31,500. Earnings = 3.5% of 50,000 plus 6.5% of 31,500:
(0.035)(50,000) + (0.065)(31,500), so choice b.