Asked by Vanessa Pressat on Jul 05, 2024
Verified
A home furnishings salesperson works on a commission-only basis. He earns an 11% commission on all sales that are final, i.e., merchandise is not returned. Last month sales were $48,500, but $7,400 worth of furnishings were returned. What was the salesperson's commission for last month?
Commission-Only
Describes a compensation structure where an employee or agent is paid solely based on the commission from the sales they generate.
Commission
A service charge assessed by a broker or agent for facilitating a transaction, typically a percentage of the transaction's total value.
Merchandise
Goods or items that are available for purchase in retail, including a wide range of products from clothing to electronics.
- Assess impacts of merchandise returns on commission earnings.
Verified Answer
Learning Objectives
- Assess impacts of merchandise returns on commission earnings.
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