SOLUTION: I need help with this problem:
Solve the problem
A salesperson has two job offers. Company A offers a weekly salary of $200 plus commission of 10% of sales. Company B offers a
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Question 157482: I need help with this problem:
Solve the problem
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 above which Company A's offer is the same as Company B's?
The answers to choose from are
$4000
$4100
$8000
$2000
Answer by gonzo(654) (Show Source): You can put this solution on YOUR website!
looks like the break even point is $4000 in sales in one week as follows:
200 + (.10)*x = 400 + (.05)*x
.10*x - .05*x = 400 - 200
.05*x = 200
x = 200/.05 = 4000
they are the same AT this point.
above this point, then Company A offer should be better.
to prove, take sales of $5000.
then .10*5000 + 200 should be greater than .05*5000 + 400.
calculating out we get
$500 + 200 = $700 for company A and $250 + $400 = $650 for company B which means company A is better when sales each week are above $4000.
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