In: Finance
Velma is an Account Manager for Sherwin Williams paint. For the month, Velma sold paint that totaled $41,185 in sales. The cost of goods sold of this paint was 80%, so she generated 20% of sales as profit (or gross margin) for the company. Velma is paid 42% straight commission based on her profit. What is the total of her monthly compensation? (round to nearest dollar)
Profit generated=Sales*20%
=41,185*20%
=$8237
Hence monthly compensation=8237*42%
=$3460(Approx)