Question 1 · 1 mark · Difficulty 2/3
A sales manager at an international electronics company uses a spreadsheet to calculate monthly commission payments. The formula =IF(B2>5000,B2*0.1,B2*0.05) is entered in cell C2. What does this formula calculate?
- A fixed commission of 5000 multiplied by sales
- 10% commission if sales exceed 5000, otherwise 5% commission
- 5% commission if sales exceed 5000, otherwise 10% commission
- 10% commission on all sales over 5000 only
Show answer & explanation
✓ Answer: B — 10% commission if sales exceed 5000, otherwise 5% commission
Award 1 mark for understanding that the IF function tests the condition B2>5000, and if TRUE returns B2*0.1 (10%), if FALSE returns B2*0.05 (5%). C is incorrect because it reverses the commission percentages. D is incorrect because commission is calculated on total sales, not just the amount over 5000. A is incorrect because 5000 is the threshold value, not a multiplier.