choose the method of pay that would result in the most earnings for one month on sales of $40,000. a. straight commission of 7.5% on all sales. b. monthly salary of $1,600 plus 2.5% commission on all sales. c. graduated commission of 5% on the first $30,000 in sales and 6% on anything over that.

The salesperson will make the highest earnings when he earns a graduated commission of 4% on the first $25,000 in sales and 8% on anything over that. The correct answer is option D.

What are Commission and salary?

Salespeople do not earn only a fixed salary. Most of the income of salespeople comes in through commissions on sales made. The higher the percentage of the commission, the higher the income of the salesperson.

In the context of the question, the salesperson will make the highest earnings when he earns a graduated commission of 4% on the first $25,000 in sales and 8% on anything over that.

Therefore, the correct answer is the salesperson will make the highest earnings when he earns a graduated commission of 4% on the first $25,000 in sales and 8% on anything over that. The correct answer is option D.

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