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 = .026*60000 + .034*(89400-60000) = 2559.60
To calculate Pamela Mello's total commission, we need to determine the commission earned from the first $60,000 of her sales volume and the commission earned from the remaining sales above $60,000.
Step 1: Calculate the commission for the first $60,000
Pamela Mello is paid 2.6% commission on the first $60,000 of her sales volume.
Commission on the first $60,000 = 2.6% of $60,000
To calculate this, divide 2.6 by 100 to convert it to a decimal:
2.6% = 0.026
Multiply 0.026 by $60,000 to find the commission earned on the first $60,000:
Commission on the first $60,000 = 0.026 x $60,000
Commission on the first $60,000 = $1,560
Step 2: Calculate the commission for sales above $60,000
For sales volume above $60,000, Pamela Mello is paid 3.4% commission.
Sales volume above $60,000 = $89,400 - $60,000
Calculate the commission on sales volume above $60,000:
Commission on sales volume above $60,000 = 3.4% of (sales volume above $60,000)
To calculate this, divide 3.4 by 100 to convert it to a decimal:
3.4% = 0.034
Multiply 0.034 by (sales volume above $60,000) to find the commission earned on sales above $60,000:
Commission on sales volume above $60,000 = 0.034 x (sales volume above $60,000)
Commission on sales volume above $60,000 = 0.034 x ($89,400 - $60,000)
Commission on sales volume above $60,000 = 0.034 x $29,400
Commission on sales volume above $60,000 ≈ $1,000.60
Step 3: Calculate the total commission
To find the total commission, we sum the commission earned on the first $60,000 with the commission earned on sales volume above $60,000:
Total commission = Commission on the first $60,000 + Commission on sales volume above $60,000
Total commission = $1,560 + $1,000.60
Total commission = $2,560.60
Therefore, Pamela Mello's total commission for a weekly sales volume of $89,400 is approximately $2,560.60.