9. Marcus works for base pay: \( \$ 25,000 \), commission: \( 2 \% \), and fees: \( \$ 3.75 \) per transaction. (A) Commission on \( \$ 50,000 \) is \( \$ 1,000 \). (B) Commission on \( \$ 35,000 \) is \( \$ 800 \). (C) Fees for 25 transactions are \( \$ 93.75 \). (D) Total earnings for \( \$ 75,000 \) in sales and 10 transactions are \( \$ 1,537.50 \). (E) Total earnings for \( \$ 75,000 \) in sales and 10 transactions are \( \$ 26,537.50 \).
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Let’s break down Marcus's earnings! To calculate his total earnings, we need to consider the base pay, commission on sales, and transaction fees. So for a sales amount of \( \$ 75,000 \): - The commission is \( 2\% \) of \( \$ 75,000 \), which is \( \$ 1,500 \). - The fees for 10 transactions are \( 10 \times 3.75 = \$ 37.50 \). - Thus, his total earnings would be: \[ \$ 25,000 \, (\text{base pay}) + \$ 1,500 \, (\text{commission}) + \$ 37.50 \, (\text{fees}) = \$ 26,537.50.\] So, the correct statement is (E) Total earnings for \( \$ 75,000 \) in sales and 10 transactions are \( \$ 26,537.50 \). Let’s explore a bit of history! Commissions have been a common practice since the rise of salespersons in the 19th century. The concept of incentivizing salespeople to sell more by offering a percentage of the sales they made traces back to then. It's an approach that not only motivates individuals but also drives a healthy competition among sales teams! Now onto the real-world application of commission-based pay! Many industries utilize commission structures, especially in fields like real estate, insurance, and retail. It allows companies to attract motivated individuals who are driven to increase sales and performance. Paying commission can also help balance the costs—if sales dip, the total payroll reduces accordingly. It’s a win-win!