Parker and Company pays Selma Stokes on a variable commissio

Parker and Company pays Selma Stokes on a variable commission scale. In a month when Selma had net sales of $155,000, what was her Gross Pay based on the following scale?

Net Sales

Commission Rate

Up to $40,000

5%

Excess of $40,000 to $75,000

5.5%

Excess of $75,000 to $100,000

6%

More than $100,000

7%

Solution

Gross sales = net sales + comission

Selma has net sales of $155.000 so she falls under last catagory i.e7%

so gross pay = 155000+0.07*155000

gross pay = $165850