Nitin is paid on a graduated commission scale. He receives commission at the rate of 2% for the first $10,000 of sales in a month, 3% on the next $20,000, and 4.5% on all further sales. What is Nitin's average rate of commission in a month in which his sales are $60,000?
A) 3.167%
B) 3.417%
C) 3.583%
D) $5
E) 3.83%

Question

Quizplus · Accepted Answer

Nitin's commission is calculated as follows: 2% of $10,000 = $200, 3% of the next $20,000 = $600, and 4.5% of the remaining $30,000 = $1,350. Total commission = $200 + $600 + $1,350 = $2,150. The average rate of commission is ($2,150 / $60,000) * 100% = 3.583%.

Nitin Is Paid on a Graduated Commission Scale