Solve the problem below. Use at least THREE of the provided terms in your explanation.
UNDERLINE the vocabulary terms that you use. [Vocabulary Bank: commission, graduated
commission, commission rate, calculated.]
Kim works as a salesperson. Last month she had $12,500 in sales. She receives graduated
commission as shown in the table.
Commission Percent
496
6%
8%
She calculated her graduated commission as follows:
Level of Sales
First $5,000
Next $3,000
Over $8,000
$5,000 x 4% = $200
$8,000 x 6% = $480
$12,500 x 8% = $1,000
Total Commission: $1,680
When she got her paycheck she was surprised that her commission was only $740.
1) Explain Kim's mistake in calculating her commission