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A salesman has a basic salary of Ksh 15,000 per month. Calculate his commission and total earnings for sales of Ksh 115,000 based on the tiered commission structure provided.
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2 partsStep-by-step solution
6 stepsHere's how to calculate the salesman's commission and total earnings:
- Basic Salary: Ksh 15,000 per month
- Total Sales for the month: Ksh 115,000
- Commission Structure:
- Up to Ksh 50,000 sales: 0% commission
- For the 1st Ksh 25,000 above Ksh 50,000 (i.e., sales from Ksh 50,001 to Ksh 75,000): 2.5% commission
- For the next Ksh 25,000 (i.e., sales from Ksh 75,001 to Ksh 100,000): 5% commission
- For sales above Ksh 100,000: 5% commission
Part a· 5 steps
How much commission did he earn that month?
Calculate commission for sales up to Ksh 50,000.
Sales amount: Ksh 50,000
Commission rate: 0%Calculate commission for the 1st Ksh 25,000 above Ksh 50,000.
This covers sales from Ksh 50,001 to Ksh 75,000.
Sales amount in this tier: Ksh
Commission rate:Calculate commission for the next Ksh 25,000.
This covers sales from Ksh 75,001 to Ksh 100,000.
Sales amount in this tier: Ksh
Commission rate:Calculate commission for sales above Ksh 100,000.
Total sales: Ksh 115,000
Sales amount in this tier: Ksh
Commission rate:Calculate the total commission.
The commission he earned that month is .
Part b
What was his total earning that month?
Add the basic salary and the total commission.
His total earning that month was .
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