william earns $1200 per month selling real estate. he also earns a 0.25% commission on sales each month that…

william earns $1200 per month selling real estate. he also earns a 0.25% commission on sales each month that total $500 000 or less and 3% on sales over $500 000. last month he sold houses with the following values: $125 000, $85 000, $185 000, $225 000 and $65 000. how much did he earn?\nwilson earns $6.85 per hour plus 3% commission on his first $5000 in sales and 9% on all sales over $5000. last week wilson worked 42 hours and his sales totalled $15500. find his earnings for the week.\nwhy would an employer pay his employees on the basis of step commission?

william earns $1200 per month selling real estate. he also earns a 0.25% commission on sales each month that total $500 000 or less and 3% on sales over $500 000. last month he sold houses with the following values: $125 000, $85 000, $185 000, $225 000 and $65 000. how much did he earn?\nwilson earns $6.85 per hour plus 3% commission on his first $5000 in sales and 9% on all sales over $5000. last week wilson worked 42 hours and his sales totalled $15500. find his earnings for the week.\nwhy would an employer pay his employees on the basis of step commission?

Answer

Explanation:

Step1: Calculate William's total sales

Add up the values of the houses he sold: $125000 + 85000+185000 + 225000+65000=685000$.

Step2: Calculate William's commission

Since his sales ($685000$) are over $500000$, he earns $0.25%$ on the first $500000$ and $3%$ on the amount over $500000$. Commission on first $500000$: $500000\times0.0025 = 1250$. Amount over $500000$: $685000 - 500000=185000$. Commission on amount over $500000$: $185000\times0.03=5550$. Total commission: $1250 + 5550=6800$.

Step3: Calculate William's total earnings

Add his base - salary and commission: $1200+6800 = 8000$.

Step4: Calculate Wilson's hourly earnings

Wilson worked $42$ hours at $6.85$ per hour. Hourly earnings: $42\times6.85 = 287.7$.

Step5: Calculate Wilson's commission

He earns $3%$ on the first $5000$ in sales and $9%$ on sales over $5000$. Commission on first $5000$: $5000\times0.03=150$. Amount over $5000$: $15500 - 5000 = 10500$. Commission on amount over $5000$: $10500\times0.09 = 945$. Total commission: $150+945=1095$.

Step6: Calculate Wilson's total earnings

Add his hourly earnings and commission: $287.7+1095=1382.7$.

Step7: Answer the third - part

An employer might pay step - commission to motivate employees to increase sales. By offering higher commission rates on higher levels of sales, employees are incentivized to work harder and sell more. Also, it can help in cost - control for the employer as they only pay higher commissions when certain sales thresholds are met.

Answer:

William's earnings: $$8000$. Wilson's earnings: $$1382.7$. Reason for step - commission: To motivate employees to increase sales and control costs.