Nitin Is Paid a Base Salary of $200 Per Week

question 320

Multiple Choice

Nitin is paid a base salary of $200 per week and commission at the rate of 3% for sales over $5,000, 4% if his sales are over $8,000, and 5% if sales are over $15,000. How much will Nitin earn in a week in which his sales are $20,000?

• A) $1,200
• B) $1,000
• C) $800
• D) $600
• E) $200

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Definitions:

Adjusted From

A term used to indicate the process of making modifications or changes to financial or other data for the purpose of providing a clearer picture of a situation or condition.

Significant Influence

The ability of a shareholder or an entity to shape the financial and operating policies of another company without having control over it.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders in the form of cash.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenues, indicating the company's financial performance over a specific period.