Mulberry Company pays all its sales representatives a base salary of $23,000.00 per annum and a commission on all jackets that they sell over $2,500.00. If a sales representative's salary last month was $3,300.00 and his sales were $16,750.00, calculate the commission rate.
Answers (1)
If the base annual salary is 23,000 then the monthly base is 1916,67. As he got 3300 last months, then the difference of 1383.33 represented the comission. The comission base is 16750 (assuming the 2500 is a monthly limit, not clear from the question). Then the comission % is 1383.33/16750 = 9.7%. Numbers seems strange to me but I do not see any other way of looking at it.