A salesperson receives a base salary of $1,000 per month, then 3 percent on the first $50,000 of product sold, 4 percent on the next $30,000, and 5 percent on sales beyond $80,000. What is the total pay for a month in which $100,000 is sold?

1. Split the $100,000 of sales across the three commission bands before adding anything. 2. The first band is the first $50,000 at 3 percent, which gives $1,500. 3. The second band is the next $30,000 at 4 percent, which gives $1,200. 4. Sales beyond $80,000 come to $100,000 minus $80,000, which is $20,000, and 5 percent of that is $1,000. 5. Commission therefore totals $1,500 plus $1,200 plus $1,000, which is $3,700. 6. Adding the base salary of $1,000 gives total pay of $4,700 for the month. 7. The trap in option C is stopping at the commission and forgetting the base salary, and the trap in option B is applying 3 percent to the whole $50,000 band but only 4 percent to everything above it. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Types of Compensation or Pay_