SOLUTION: There are two companies looking for salesman. Company A pays a weekly salary of 4000, and a commission of 14.5% on sales. Company B pays a straight commission of 30% of sales. Both

Question 1140632: There are two companies looking for salesman. Company A pays a weekly salary of 4000, and a commission of 14.5% on sales. Company B pays a straight commission of 30% of sales. Both companies expect the salesman to have sales of 40,000 in the first month and reach sales of 200,000 at the end of six months. Find the estimated earnings after a month and estimated earnings after 6 months for both companies and determine which will give a better pay.
Thank you very much.
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
A after a month is 4000(4)+0.145*40000=16000+5800=21,800 in a month. After six months, 26 weekly salaries are 104,000+ .145*200000=29000=133,000
B straight commission of 30% gives 12,000 in first month and 60000 at the end of six months. Given that the weekly salary is significant, it is not surprising that A pays better.
If A is a monthly salary of 4000, then it would be 9800 in the first month and 53,000 after six months and then B would be better.
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