Calculating Total Earnings for a Graduated Commission Employee
Explanation:
Commission Calculation: The calculation of total earnings for a graduated commission employee involves multiplying the sales amount by the respective commission rates. In this case, for the first $50,000 in sales, the employee earns 3.5% commission which is calculated as (0.035)(50,000). And for the sales amount over $50,000 (in this case $81,500), the employee earns 6.5% commission which is calculated as (0.065)(81,500).
Total Earnings: By adding the earnings from the first $50,000 in sales and the earnings from the sales above $50,000, we get the total earnings of the employee on $81,500 in sales. The correct expression for this calculation is (0.035)(50,000) (0.065)(81,500), which is option a.
Understanding the correct way to calculate earnings based on different commission rates is crucial for employees who earn through sales commissions. It ensures transparency and accuracy in determining the total amount earned on different sales figures.