Question

Sally earns graduated commission on her sales each month. She earns 6% commission on the first $45,000 in sales and 8% on anything over that. If Sally had $51,000 in sales this month, how much commission did she earn?
a.
$4,080
b.
$3,180
c.
$3,060
d.
$2,820

Answer 1

Sally earns 6% on the first $45,000 = 0.06 × 45,000 = $2,700, and 8% on the remaining $51,000 − $45,000 = $6,000 = 0.08 × 6,000 = $480.
Total commission = $2,700 + $480 = $3,180.

Answer: b. $3,180