SOLUTION: An account executive receives a base salary plus a commission. On $20,000 in monthly sales, the account executive receives $1800. On $50,000 in monthly sales, the account executive
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Question 85495: An account executive receives a base salary plus a commission. On $20,000 in monthly sales, the account executive receives $1800. On $50,000 in monthly sales, the account executive receives $3000.
A.) Determine a linear function that will yield the compensation of the sales executive for a given amount of monthly sales.
B.) Use this model to determine the account executive's compensation for $85,000 in monthly sales.
Found 2 solutions by stanbon, rajagopalan:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An account executive receives a base salary plus a commission. On $20,000 in monthly sales, the account executive receives $1800. On $50,000 in monthly sales, the account executive receives $3000.
A.) Determine a linear function that will yield the compensation of the sales executive for a given amount of monthly sales.
You are given two points (20000,1800) and (50000,3000)
slope = [20000-50000]/[1800-3000) = [1200/30000] = 0.04
Find the y-intercept:
3000= 0.04(50,000)+b
b= 3000-2000
b=1000
EQUATION:
compensation = 0.04(sales)+1000
--------------------------------
B.) Use this model to determine the account executive's compensation for $85,000 in monthly sales.
-----------------------
C(85000) = 0.04(85000)=1000
C(85000) = 3400 =1000
C(85000) = $4400
=================
Cheers,
stan H.
Answer by rajagopalan(174) (Show Source): You can put this solution on YOUR website!
******
Sales.......Amt Recd
$50,000 ....$3000
$20,000 ....$1800..Subtracting
$30,000 ....$1200
For an increase in sale of 30,000 he gets a commn of 1200
which is 1200/30000=4%
Commission percent=4
So in 20,000 sales commission = 20000x0.04=800
Amount earned=1800
commission=800
So Basic Salary=1800-800=1000
Now the eqn for amount received by executive=1000+(total sale(S)x0.04)
The model is
A=0.04S+100
where A= amount Received by Executive, S=Total Sales
****
Using the model
For 85000$ sale,
we get A=(0.04x8500)+1000
=3400+1000
=4400
Answer $4400.
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