Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Example 2-25 Kate Kline receives an annual $35,000 base salary for working a certain territory. A sales quota of $800,000 has been set for

image text in transcribed

Example 2-25 Kate Kline receives an annual $35,000 base salary for working a certain territory. A sales quota of $800,000 has been set for that territory for the current year. Kline will receive a 6 percent commission on all sales in excess of $800,000. For the current year, the sales in the territory are $1,030,000. The bonus paid Kline would be: Kline's total earnings for the year would be: $13,800 (6% of $230,000) $48,800 ($35,000 + $13,800) Jill Connor is employed as a salesperson in the men's department of Fashion Line. In addition to her weekly base salary of $359, Connor is paid a commission of 3% on her total net sales for the week (total gross sales less any customer returns). During the past week, to promote the sale of its fine cashmere sweaters, Fashion Line agreed to pay Connor an additional PM (push money) of 3% of the total net sales of cashmere sweaters. Connor's weekly sales tally is given below. Item Customer Returns Gross Sales Regular sweaters $412 $46 Cashmere sweaters 1004 70 Ties 188 0 453 42 Dress shirts Sports shirts 171 28 Compute Connor's total weekly earnings, showing her (a) weekly base salary, (b) commission, (c) PM, and (d) total weekly earnings. Round your intermediate and final answers to the nearest cent. a. Weekly base salary: Weekly gross sales Less customer returns Weekly net sales b. Commission: $ 3% Weekly gross sales of cashmere sweaters Less customer returns Weekly net sales of cashmere sweaters c. Push money (PM): $ d. Total weekly earnings 3%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions