Martha is a regional supervisor who earns a base salary of $35,000 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semimonthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $35,950 in contract sales for the third quarter. What will be her gross pay on her next pay date? (Do not

round interim calculations. Round final answer to 2 decimal places.)

A) $1,458.33
B) $1,817.83
C) $2,053.13
D) $1,705.65


Ans: B) $1,817.83

The base salary of Martha for september month = $ 35,000 \div 24
Base salary for september month = $ 1,458.33
Gross pay on pay date = Base salary + Contract commission
Gross pay on pay date = $ 1,458.33 + 0.01 * $ 35,950
Gross pay on pay date = $ 1,817.83

Business

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