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Wood Company pays each of its three salespeople a base salary of $300 per month plus a commission of 10 percent of sales. The base salary is paid each month as incurred; the 10 percent commission is paid the month following the month of sale. The total sales for the past three months are as follows:October $15,000November $20,000December $30,000Total salary and commission cash disbursements for December add up to

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Answer:

$2,900

Explanation:

First, calculate the base salary of the 3 salespeople and that is:

3 salespeople multiplied by $300 each is equal to $900.

Now, the commission to be paid in December is based on the November Sales of $20,000.

So 10% percent of $20,000 is $2,000.

Finally, add the 2 figures ($900 + $2,000) and you'll get the total salary and commission cash disbursements for December of $2,900.

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