Sales Commission (Part 1): Some companies pay their sales re…

Questions

Sаles Cоmmissiоn (Pаrt 1): Sоme compаnies pay their sales representatives (sales-reps) in a “graduated commission” plan.  Suppose a company pays their employees graduated commission in the following way: If total sales is over— but not over— the commission is: $0 $5,000 2% of the amount over $0 $5,000 $10,000 $100 plus 4% of the amount over $5,000 $10,000 $20,000 $300 plus 5% of the amount over $10,000 $20,000 no limit $800 plus 6% of the amount over $20,000   (A)  How much money would a sales-rep earn in commission with $12,000 in sales?   (B) What would be the effective commission rate for part (A)?   (C) Write a sentence or two explaining what the effective commission rate from part (B) means in this context.

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