**Ron Company Commission Schedule:**Ron Company uses the following commission schedule:- **2%** on sales **up to $80,000**- **3.5%** on sales in **excess of $80,000 up to $100,000**- **4%** on sales **more than $100,000****Task: Calculate the gross earning.**Here is an example scenario:| Employee | Total Sales | Gross Earning ||-----------|-------------|---------------|| Bill Moore | $141,000 | |To calculate the gross earning for Bill Moore:1. **Sales up to $80,000:** - Commission = 2% of $80,000 = $1,6002. **Sales from $80,000 to $100,000 (i.e., $20,000):** - Commission = 3.5% of $20,000 = $7003. **Sales in excess of $100,000 (i.e., $41,000):** - Commission = 4% of $41,000 = $1,6404. **Total Gross Earning:** - $1,600 + $700 + $1,640 = $3,940So, Bill Moore's gross earning would be **$3,940**.

Gross earnings are the profit earned by the individual. It can be calculated on the bases of sales…

Answered: Ron Company has the following…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ron Company has the following commission schedule: Commission rate 2% 3.5% 4% Calculate the gross earning. Employee Sales Up to $80,000 Excess of $80,000 to $100,000 More than $100,000 Bill Moore Total sales Gross earning $ 141,000