Asked by Eddie Weissfeld on May 19, 2024
Verified
Hillary sells cosmetics from her part-time home-based business. She receives a straight commission of 21% from her supplier. At the year-end, she also receives a 7% bonus on sales exceeding her annual quota of $50,000. What will her gross annual earnings be for a year in which her average monthly sales are $5,500?
Straight Commission
A compensation method where an employee or salesperson is paid solely based on the amount of sales generated.
Annual Quota
An annual quota is a fixed limit on the quantity of something that can be produced, imported, or acquired within a single year.
Gross Earnings
The total amount of money an individual earns before any deductions or taxes are applied.
- Understand the calculation of commissions based on sales performance and goal overachievement.
Verified Answer
SH
Learning Objectives
- Understand the calculation of commissions based on sales performance and goal overachievement.