Answer:
d. Graduated commission of 5% on the first $40,000 in sales and 9% on anything over that.
Step-by-step explanation:
The attached graph shows the commission curves for the four options. For very high amounts of sales, the 10% rate (option c) will be the best, but sales must be above $140,000 for that to be the case. In the range of interest, the 9% rate (option d) is the best.
Here are the commission calculations on $60,000 for each of the options.
a. 6% of $60,000 = $3600
b. $1500 +3% of $60,000 = $1500 +1800 = $3300
c. 4% of $50,000 + 10% of $10,000 = $2000 +1000 = $3000
d. 5% of $40,000 + 9% 0f $20,000 = $2000 +1800 = $3800 . . . . best choice
