Pamela Mello is paid on an incremental commission schedule. She is paid 2.6% on the first $60,000 and 3.4% on any sales over $60,000. If her weekly sales volume was $89,400, what was her total commission?
C = 0.026*60000 + 0.034*(89,400-60,000) = $2559.60
To calculate Pamela Mello's total commission, we need to determine the commission for both parts of her sales volume: the first $60,000 and any sales over $60,000.
1. Calculate the commission for the first $60,000:
Commission = Sales volume * Commission rate
Commission = $60,000 * 2.6% (convert percentage to decimal by dividing by 100)
Commission = $60,000 * 0.026
Commission = $1,560
2. Calculate the commission for sales over $60,000:
Sales over $60,000 = Total sales volume - $60,000
Sales over $60,000 = $89,400 - $60,000
Sales over $60,000 = $29,400
Commission = Sales over $60,000 * Commission rate
Commission = $29,400 * 3.4% (convert percentage to decimal by dividing by 100)
Commission = $29,400 * 0.034
Commission = $999.60
3. Calculate the total commission:
Total commission = Commission for the first $60,000 + Commission for sales over $60,000
Total commission = $1,560 + $999.60
Total commission = $2,559.60
Therefore, Pamela Mello's total commission for a weekly sales volume of $89,400 is $2,559.60.