Employee A had 3 sales in the month of December as follows: - Customer 1: Implementation amount

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Question:

Employee A had 3 sales in the month of December as follows:

- Customer 1: Implementation amount is $1,000 and subscription amount is $5,000. Total contract amount is $6,000. It's a 1 year subscription.

- Customer 2: Subscription amount is $10,000. Total contract amount is $10,000 per year. It's a 2 year subscription.

- Customer 3: Implementation amount is $2,000 and subscription amount is $12,000. Total contract amount is $14,000 for years 1-3 = $12,000. It's a 3 year subscription.

Commission Plan Information

- Base Rate = Defined as variable divided by quota

- Variable = $50,000

- Quota = $4,000,000

- Multiplier for 2 year subscriptions = 105%

- Multiplier for 3 year subscriptions = 110%

Calculate Employee A's commission payout as it relates to sales for December. Note - Employee B's commission is calculated using the first year contract total.