Choose the method of pay that would result in the most earnings for one month on sales of $40,000.

A.) Straight commission of 7.5% on all sales.
B.) Monthly salary of $1,600 plus 2.5% commission on all sales.
C.) Graduated commission of 5% on the first $30,000 in sales and 6% on anything over that.
D.) Graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.

Respuesta :

A. 0.075(40,000) = $ 3,000

B. 1600 + 0.025(40,000) = 1600 + 1,000 = $ 2,600

C. 0.05(30,000) + 0.06(10,000) = 1500 + 600 = $ 2,100

D. 0.04(25,000) + 0.08(15,000) = 1000 + 1200 = $ 2,200 

most earnings would be :  answer A ....with earnings of $ 3000

Answer: a.  Straight commission of 7.5% on all sales.

Step-by-step explanation: