FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Name
Date
Fommission
7. Nick Billups is paid a salary of $900 a month, a 2% commission on all sales, and 1.8% more on monthly
sales over $17,500. In June, his sales were $48,500 and in July, $50,200. a. Find his total salary and
commission for June. b. Find his total salary and commission for July.
900
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Transcribed Image Text:1-3 Name Date Fommission 7. Nick Billups is paid a salary of $900 a month, a 2% commission on all sales, and 1.8% more on monthly sales over $17,500. In June, his sales were $48,500 and in July, $50,200. a. Find his total salary and commission for June. b. Find his total salary and commission for July. 900
Expert Solution
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A. Find his total salary and commission for June.

JUNE SALES = $48,500

SALARY FOR JUNE = $900

 

COMMISSION CALCULATION

( A ) 2% ON ALL SALES

= 2% X $48,500 = $970

( B ) 1.8 % ON SALES ABOVE $17,500

= 1.8 % X ($48,500 - $17,500) = $558

 

TOTAL COMMISSION = $970 + $558 = $1,528

TOTAL SALARY = $900 + $970 + $558 = $2,428

 

 

 

 

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