Question

Aley Company pays all its employees in a graduated commission scale: 3% on the first $30,000 sales, 5% on sales from $30,000 to $110,000, and 7% on sales more than $110,000. Jim Jones, an employee of Aley, has $130,000 in sales. What commission did Jim earn? Show

Answer 1

Work in tiers.
If sales exceed the first tier: commission 30000*3%=$900
Subtract the first tier and calculate on the next:
130000-30000=100000
All of it goes on 7%, so
100000*5%=$5000
So he gets $5000+$900=$5900 in commission.

Answer 2

Jim made the full $30,000 for the first tier, so $30,000 x 3% = $900. He also made the full amount for the second tier. The amount of sales between $30,001 and $110,000 is $80,000 so take $80,000 x 5% = $4,000. Moving onto the third tier, Jim sold $20,000 over the $110,000 mark, so take $20,000 x 7% = $1,400. Add his commission amounts together, so $900 + $4,000 + $1,400 = $6,300.

Answer: $6,300

Answer 3

Ali Company pays all its employees a graduated commission scale: 2% on the first AED 30,000 sales, 4% on sales from AED 30,001 to AED 110,000, and 8% on sales more than AED 110,000. Rashid, an employee of Ali had AED 130,000 in sales. What commission did Rashid earn in AED?

Answer 4

Ali Company pays all its employees a graduated commission scale: 2% on the first AED 30,000 sales, 4% on sales from AED 30,001 to AED 110,000, and 8% on sales more than AED 110,000. Rashid, an employee of Ali had AED 130,000 in sales. What commission did Rashid earn in AED?