Bill Is Paid on a Graduated Commission Scale of 1

question 86

Short Answer

Bill is paid on a graduated commission scale of 1% on his first $200,000 in sales, 2% on the next $300,000, and 4% on all additional sales in a month. What is Bill's average commission rate on monthly sales totalling $600,000?

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Definitions:

Difference Between Levels

The quantitative or qualitative disparity observed between distinct stages or conditions in a variable.

Main Effect

The overall impact of an independent variable on a dependent variable in a factorial design, disregarding interactions.

Rule Of 72

A simple formula used to estimate the number of years required to double the invested money at a given annual rate of return, by dividing 72 by the expected rate of interest.

Compounding

Compounding refers to the process by which the value of an investment increases because the earnings on an investment, both capital gains, and interest, earn interest as time passes.