Question

Which of the following statements is always true? a. Workers being paid on commission make less money than if they are salaried. b. Workers being paid on commission have a salary that varies based on their performance. c. Workers being paid on commission are stressed over the amount of earnings they will have. d. Workers being paid on commission increase the accounting costs of the employer.

Answer 1

Answer:

Step-by-step explanation:

The only answer that makes any sense is B. A commission works on the premise that the more you sell, the more money you take home.

Suppose a car salesman working at a GM dealership is working on a salary of 10% of the selling price. (A bit high).

Suppose on one month he sells 10 trucks, each one selling for 40000 dollars.

1 truck brings in 40000*10/100 = 4000 for the salesman.

10 trucks bring in 10*4000 = 40000 dollars.

The next month he only sells 8 Trucks. His commission is

40000 *  10/100 = 4000 per truck

8 trucks * 4000 = 32000 total for that month. A little less but it's quite a bit for a month's work all the same.