Question

To earn additional income, Heather took up a part-time job at a call center in the evenings and weekends, here, she receives a base salary of $750 per month plus commission. Her commission rate is 5% on the first $5000 in sales above her monthly quota of $10,000 and 7.5% on any additional sales thereafter.

e) What single commission rate would have resulted in the same amount of commission earned?

Answer 1

"1. Income above 10,000

= (750-(5,000*5%))/7.5%

= 6,666.67

If single commission rate is to be calculated on total income -

= 750/(10,000+6,666.67)%

= 4.5%

Above answer is the one but sharing an alternative situation, If single commission rate is to be calculated on income over and above 5,000 -

= 750/(5,000+6,666.67)%

= 6.43%

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