A sales manager at an international electronics company uses a spreadsheet to calculate monthly commission payments. The formula =IF(B25000,B2*0.1,B2*0.05) is entered in cell C2. What does this formula calculate?

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Question

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?

Accepted Answer

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%). B is incorrect because it reverses the commission percentages. C is incorrect because commission is calculated on total sales, not just the amount over 5000. D is incorrect because 5000 is the threshold value, not a multiplier.

Answer

A fixed commission of 5000 multiplied by sales

Answer

10% commission if sales exceed 5000, otherwise 5% commission

Answer

5% commission if sales exceed 5000, otherwise 10% commission

Answer

10% commission on all sales over 5000 only

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