Question

# Melody has a monthly commission plan under which she receives 2% on the first $40,000 ofsales during the month and 3% on sales above $40,000. If Melody has sales of $73,000 during amonth, computer her commission for that month.

Answer

$1790

- Identify the sales amount above $40,000. A: Melody has sales of $73,000 out of which sales above $40,000 is $33,000.
- Calculate Melody's commission on the first $40,000 of sales. A: Melody's commission on the first $40,000 of sales is $800 (i.e. 2% of $40,000).
- Calculate Melody's commission on the additional $33,000 of sales. A: Melody's commission on the additional $33,000 of sales is $990 (i.e. 3% of $33,000).
- Calculate the total commission earned by Melody for the month. A: The total commission earned by Melody for the month is $1790 (i.e. $800 + $990).