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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.

Sagot :

The sales person will make the highest earnings when he earns a graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.

Commission and salary

Sales people do not earn only a fixed salary. Most of the income of salespeople come in through commission on sales made. The higher the percentage of the commission, the higher the income of the sales person.

In the context of the question, the sales person will make the highest earnings when he earns a graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.

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