Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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If an employee has a commission structure where sales from $0-1,000 earn 10%, then what is the commission for those earnings?

$100
$10
$50
$20

The correct answer is: $100

To determine the commission earned from sales within the $0-1,000 range with a rate of 10%, we need to apply the commission percentage to the total sales amount. In this case, if the total sales amount is $1,000, you calculate the commission by multiplying the total sales by the commission rate: \[ \text{Commission} = \text{Total Sales} \times \text{Commission Rate} \] \[ \text{Commission} = 1,000 \times 0.10 = 100 \] Thus, the employee would earn a commission of $100 on $1,000 in sales. This directly confirms that option A is accurate, as it reflects the effective calculations for the given sales and commission rate. The other options reflect different calculations that do not align with the given structure; hence, they are not applicable in this situation.