SOLUTION: A salesperson has two job offers. Company A offers a weekly salary of $200 plus commission of 10% of sales. Company B offers a weekly salary of $400 plus commission of 5% of sales
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Question 248843: A salesperson has two job offers. Company A offers a weekly salary of $200 plus commission of 10% of sales. Company B offers a weekly salary of $400 plus commission of 5% of sales. What is the amount of sales at which Company A's offer is the same as Company B's? Answer by oberobic(2304) (Show Source):
You can put this solution on YOUR website! Salary = Base + Commission
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Company A:
Base = $200
Commission = 10% of sales = .1*S
A = .1S + 200
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Company B:
Base = 400
Commission = .05*S
B = .05S + 400
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We're looking for the point where they're equal.
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200 + .1S = 400 + .05S
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multiply by 100 to get rid of decimals
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20000 + 10S = 40000 + 5S
Subtract 20000 from both sides
10S = 20000 + 5S
Subtract 5S from both sides
5S = 20000
Divide both sides by 5
S = 4000
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So, at $4000 sales, the two jobs pay the same.
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You have to always check your work. This can be done by plugging the values into the basic equations and determining if they check. Or we can graph the two lines and see where they cross.
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Company A:
200 + .1(4000) = 200 + 400 = 600
Company B:
400 + .05(4000) = 400 + 200 = 600
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Graphs
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