Practice free →
HomeBBA HRHuman Resource ManagementManaging Human Resources and Labor Relations › Using the same schedule of a $1,000 base plus 3 …

Using the same schedule of a $1,000 base plus 3 percent on the first $50,000, 4 percent on the next $30,000, and 5 percent beyond $80,000, what is the total pay for a month with exactly $80,000 of sales?

A$2,700
B$3,700
C$4,700
D$4,200
Answer & Solution
Correct answer: B. $3,700
1. Sales of exactly $80,000 fill the first two bands and leave the third band empty. 2. The first band is $50,000 at 3 percent, which gives $1,500. 3. The second band is $30,000 at 4 percent, which gives $1,200. 4. Nothing is sold beyond $80,000, so the 5 percent band contributes zero. 5. Commission is $1,500 plus $1,200, which is $2,700. 6. Adding the $1,000 base salary gives total pay of $3,700. 7. Option A is the trap of reporting commission only, and option C is the total that would apply at $100,000 of sales instead. _Source: OpenStax Introduction to Business (CC BY 4.0), Ch 8 "Managing Human Resources and Labor Relations", section Types of Compensation or Pay_
Solve this in the app — BBA HR practice & 24k+ MCQs →
Related questions