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Q.2, Compute the total commission for the following commission payment plan. Graduated Commission Rates 3% on sales to $25,000 5% from $25,000 to $50,000 7% on sales above $50,000 Sales $84,000 Commission

Q.2, Compute the total commission for the following commission payment plan. Graduated Commission Rates 3% on sales to $25,000 5% from $25,000 to $50,000 7% on sales above $50,000 Sales $84,000 Commission

FINANCIAL ACCOUNTING
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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**Q.2: Compute the total commission for the following commission payment plan.** **Graduated Commission Rates:** - 3% on sales to $25,000 - 5% from $25,000 to $50,000 - 7% on sales above $50,000 **Sales:** $84,000 **Commission:** ________ **Explanation:** To compute the total commission, apply the graduated rates to the relevant sales brackets: 1. **Sales up to $25,000:** - Commission = 3% of $25,000 2. **Sales from $25,000 to $50,000:** - Commission = 5% of $25,000 (which is $50,000 - $25,000) 3. **Sales above $50,000:** - Commission = 7% of $34,000 (which is $84,000 - $50,000) Add these amounts to find the total commission.
Transcribed Image Text:**Q.2: Compute the total commission for the following commission payment plan.** **Graduated Commission Rates:** - 3% on sales to $25,000 - 5% from $25,000 to $50,000 - 7% on sales above $50,000 **Sales:** $84,000 **Commission:** ________ **Explanation:** To compute the total commission, apply the graduated rates to the relevant sales brackets: 1. **Sales up to $25,000:** - Commission = 3% of $25,000 2. **Sales from $25,000 to $50,000:** - Commission = 5% of $25,000 (which is $50,000 - $25,000) 3. **Sales above $50,000:** - Commission = 7% of $34,000 (which is $84,000 - $50,000) Add these amounts to find the total commission.
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