SOLUTION: Each year, Mr. Brown, a real estate salesman, has the option of selecting the method by which his salary will be determined. Option 1 is a straight 2.67% of his total sales and Op

Question 182642: Each year, Mr. Brown, a real estate salesman, has the option of selecting the method by which his salary will be determined. Option 1 is a straight 2.67% of his total sales and Option 2 is a weekly salary of $1500 plus 0.5% of his total sales. Determine the weekly sales (in dollars) needed for Option 1 to result in the same weekly income as Option 2. After this point, what is the better option?
Answer by Mathtut(3670) (Show Source): You can put this solution on YOUR website!
Each year, Mr. Brown, a real estate salesman, has the option of selecting the method by which his salary will be determined. Option 1 is a straight 2.67% of his total sales and Option 2 is a weekly salary of $1500 plus 0.5% of his total sales. Determine the weekly sales (in dollars) needed for Option 1 to result in the same weekly income as Option 2. After this point, what is the better option
:
option 1: I=.0267(S)
option 2: I=.005(S)+1500
:
we want option 1 to equal option 2 so set the equations equal
:
.0267S=.005S+1500
:
.0217S=1500
:
$in sales for option 1 to equal option 2
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