Norton Food Wholesale pays all sales representatives \( 4 \% \) commission on the first \( \$ 5000 \) of their individual sales and \( 7 \% \) commission on their indiv excess of \( \$ 5000 \). Assume that Eric Thompson sold merchandise valued at \( \$ 49,500 \) during the month of May. Calculate the following amounts. (a) Commission on sales in the sales base: \( \$ 200.00{ }^{\top} \) (b) Commission on additional sales: (c) Gross pay:

To calculate Eric Thompson's commissions and gross pay for May, we'll break down his sales into the **sales base** and **additional sales** as per Norton Food Wholesale's commission structure. ### Given: - **Total Sales**: \$49,500 - **Sales Base**: First \$5,000 at **4%** - **Additional Sales**: Amount exceeding \$5,000 at **7%** ### (a) Commission on Sales in the Sales Base: This part is already provided. - **Calculation**: \[ \text{Commission} = 4\% \times \$5,000 = 0.04 \times 5,000 = \$200.00 \] - **Answer**: \$200.00 ### (b) Commission on Additional Sales: First, determine the additional sales amount by subtracting the sales base from the total sales. - **Additional Sales**: \[ \$49,500 - \$5,000 = \$44,500 \] - **Commission Calculation**: \[ \text{Commission} = 7\% \times \$44,500 = 0.07 \times 44,500 = \$3,115.00 \] - **Answer**: \$3,115.00 ### (c) Gross Pay: Combine the commissions from both the sales base and the additional sales to determine the total gross pay. - **Gross Pay Calculation**: \[ \$200.00 (\text{Sales Base Commission}) + \$3,115.00 (\text{Additional Sales Commission}) = \$3,315.00 \] - **Answer**: \$3,315.00 ### Summary: - **(a)** Commission on sales in the sales base: **\$200.00** - **(b)** Commission on additional sales: **\$3,115.00** - **(c)** **Gross Pay**: **\$3,315.00**