Sharon Is a Manufacturer's Representative Selling Office Furniture Directly to Businesses

question 14

Short Answer

Sharon is a manufacturer's representative selling office furniture directly to businesses. She receives a monthly salary of $2,000 plus a 2.2% commission on sales exceeding her quota of $150,000 per month. a) What are her earnings for a month in which she has $227,000 in sales? b) If her average monthly sales are $235,000, what straight commission rate would generate the same average monthly earnings as her current basis of remuneration?

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Definitions:

Positive Statement

An objective statement based on empirical facts, which can be tested as true or false.

Unemployment Rate

The rate of individuals in the labor force who have no employment but are actively trying to find a job.

Units Produced

The number of complete goods or products a company manufactures over a specific period.

On Hand

Refers to the inventory that is physically present and available for sale or use within a business.