Janine is paid commission of 3% on all sales up to and including $10 000, and 5% on all sales over 10 000. How much commission will she earn on sales of $48 000?
0.03*10,000+0.05(48,000-10,000) =
Thank you
To calculate Janine's commission, we need to determine the amount of sales that fall into each tier and calculate the commission for each tier separately.
First, we need to determine how much of the sales ($48,000) falls into the first tier, which is sales up to $10,000. Since the maximum amount for the first tier is $10,000, we can calculate the difference between $10,000 and $0 as follows:
$10,000 - $0 = $10,000
So, the amount of sales that falls into the first tier is $10,000.
Next, we need to calculate the second tier, which is sales over $10,000. To do that, we subtract the amount in the first tier from the total sales amount:
$48,000 - $10,000 = $38,000
Therefore, the amount of sales that falls into the second tier is $38,000.
Now, let's calculate the commission for each tier.
For the first tier, Janine earns a 3% commission on the sales. To find the commission amount, we multiply the sales amount by 3% (or 0.03):
Commission for the first tier = $10,000 * 0.03 = $300
For the second tier, Janine earns a 5% commission on the sales. To find the commission amount, we multiply the sales amount by 5% (or 0.05):
Commission for the second tier = $38,000 * 0.05 = $1,900
Finally, we can calculate Janine's total commission by adding the commission amounts from each tier:
Total commission = Commission for the first tier + Commission for the second tier
= $300 + $1,900
= $2,200
Therefore, Janine will earn a commission of $2,200 on sales of $48,000.