To calculate Nitin's earnings for the week based on his sales of \[tex]$20,000, we need to break down his earnings into two parts: his base salary and his commission. Let's go through the details step by step:
1. Base Salary:
Nitin's base salary for the week is \$[/tex]300.
2. Commission Rate:
According to the given commission rates:
- If sales are over \[tex]$25,000, the commission rate is 4.5%.
- If sales are over \$[/tex]10,000, the commission rate is 4%.
- If sales are over \[tex]$5,000, the commission rate is 2.5%.
- If sales are \$[/tex]5,000 or less, there is no commission.
Since Nitin's sales for the week are \[tex]$20,000, he falls into the category where sales are over \$[/tex]10,000, but not over \[tex]$25,000. Therefore, his commission rate is 4%.
3. Calculating Commission:
The commission is calculated as a percentage of the sales.
\[
\text{Commission} = \text{Sales} \times \text{Commission Rate}
\]
Plugging in the numbers:
\[
\text{Commission} = 20000 \times 0.04 = 800
\]
4. Total Earnings:
Nitin's total earnings for the week will be the sum of his base salary and his commission.
\[
\text{Total Earnings} = \text{Base Salary} + \text{Commission}
\]
\[
\text{Total Earnings} = 300 + 800 = 1100
\]
Therefore, Nitin will earn \$[/tex]1100 in a week in which his sales are \[tex]$20,000.
The correct answer is not listed among the given options, but based on our calculations, his total earnings would be \$[/tex]1100 which closely matches with the numerical result provided.
