SOLUTION: When hired at a new job selling electronics, you are given two pay options: Option A: Base salary of $14,000 a year with a commission of 10% of your sales Option B: Base salary

Question 1108247: When hired at a new job selling electronics, you are given two pay options:
Option A: Base salary of $14,000 a year with a commission of 10% of your sales
Option B: Base salary of $20,000 a year with a commission of 4% of your sales.
After what amount of your sales (in $) does option A produce a larger paycheck for you?
Answer by ikleyn(52781) (Show Source): You can put this solution on YOUR website!
.

Option A:  Salary A = 14000 + 0.1*s;

Option B:  Salary B = 20000 + 0.04*s,


where s is your sales amount.


Equilibrium:  A = B,   or


14000 + 0.1*s = 20000 + 0.04*s,

0.1*s - 0.04*s = 20000 - 14000,

0.06*s = 6000  ====>  s =  =  = 100000.


Answer.  Option A produces a larger paycheck after $100000 sales.

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