The cost of sale includes a 2% fee based on charges to date of sale, not less than which two amounts?

• A. $15 and $100
• B. $10 and $50
• C. $20 and $150
• D. $25 and $75

Answer: (A)

The cost of sale is a percentage of charges, but there are fixed minimum floors so the fee isn’t too small on any sale. Here, those fixed minimums are two amounts: $15 and $100. This means you compare the 2% of charges to the applicable minimum and the fee must be at least the higher applicable floor. So if the 2% calculation would be less than $15, you pay $15; for the cases governed by the higher floor, the minimum is $100, ensuring the fee isn’t below that level in that tier. In short, the two minimums used are $15 and $100.