Cindy makes a base monthly salary of $3900. As a vendor, she must also sell $36000 worth of items per month. She also makes a 6% commission on all sales beyond the monthly quota. There is also an additional 2% bonus on top of the normal commission rate for any sales beyond $39600. If Cindy sold $46800 worth of items this month, what is her total salary for the month including-base salary and commission to the nearest dollar.

1 answer

If the bonus 2% is not paid for the sales making 6%, then she made

s = 3900 + .06(39600-36000) + .02(46800-39600) = $4260.00

On the other hand, if she makes 6% on all sales beyond 36000 and an additional 2% on sales above 39600, then she made

3900 + .06(46800-36000) + .02(46800-39600) = $4692.00