David is paid on a graduated commission scale at Lotrex Company. He receives 2% commission on the first $20,000, 6% on sales from 20,000 to 70,000, 8.5% commission on sales from $70,000 to 100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
David is paid on a graduated commission scale at Lotrex Company. He receives 2% commission on the first $20,000, 6% on sales from 20,000 to 70,000, 8.5% commission on sales from $70,000 to 100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
David is paid on a graduated commission scale at Lotrex Company. He receives 2% commission on the first $20,000, 6% on sales from 20,000 to 70,000, 8.5% commission on sales from $70,000 to 100,000, and 10% commission on sales over $100,000. David had sales of $82,000. His commission is:
Expert Solution
Step 1 : Notes
- Commission rate on first $20,000 = 2%
- Commission rate on next $50,000 = 6%
- Commission rate on next $30,000 = 8.5%
- Commission rate on over $100,000 = 10%
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