Ricki Cohn Encyclopedia sales Commission rate: 11% Month’s sales: $2,550 What is the monthly commission?
2550 x .11 = ??
7. A second employee of the computer store in Problem 6 ispaid a base salary of $2,500 a month plus a 5% commissionon all sales during the month.
(A) How much must this employee sell in 1 month to earna total of $3,500 for the month?
(B)Determine the sales level where both employees receivethe same monthly income. If employees can selecteither of these payment methods, how would youadvise an employee to make this selection
To find the monthly commission, you need to multiply the sales amount by the commission rate.
Commission = sales amount * commission rate
In this case, the sales amount is $2,550 and the commission rate is 11%.
Commission = $2,550 * 0.11
After calculating, we find that the monthly commission is $280.50.