Martha is a regional supervisor who earns a base salary of $34,400 per year plus a 1% commission on all service contracts that she sells to existing customers. The company pays salaries on a semi monthly basis and contract commissions on a quarterly basis. As of September 30, Martha had made $38,200 in contract sales for the third quarter. What will be her gross pay on her next pay date

Martha gross pay on her next pay date is $1,815.33.

Explanation:

This can be calculated as follows:

Number of semi months in a year = 24

Semi monthly salary = Salary per year / Number of semi months in a year = $34,400 / 24 = $1,433.33

Commission from contract sales for the third quarter = Contract sales for the third quarter * Commission percentage = $38,200 * 1% = $382

Martha gross pay on her next pay date = Semi monthly salary + Commission from contract sales for the third quarter = $1,433.33 + $382 = $1,815.33

Therefore, Martha gross pay on her next pay date is $1,815.33.

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