document.write( "Question 1036352: Curt can be paid in one of two ways for the furniture he sells. Plan A: Salary of $800 per month, plus a commission of 10% of sales. Plan B: Salary of $900 per month, plus a commission of 15% of sales in excess of $6000. For what amount of monthly sales is plan B better than plan A, assuming Curt's sales are always more than $6000? \n" ); document.write( "
Algebra.Com's Answer #651126 by Theo(13342)![]() ![]() You can put this solution on YOUR website! let x = the monthly sales figure.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan A revenue is equal to 800 + .10 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan B revenue is equal to 900 + .15 * x - .15 * 6000 = 900 + .15 * x - 900 = .15 * x, because the 900 monthly salary is erased by him losing 15% commission on the first 6000 of sales.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "you get:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan A pays 800 + .10 * x \n" ); document.write( "plan B pays .15 * x.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "if plan B revenue is greater than plan A revenue, your equation becomes:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( ".15 * x > 800 + .10 * x\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "subtract .10 * x from both sides of this equation to get .05 * x > 800\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "divide both sides of this equation by .05 to get x > 800 / .05 = 16,000.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan B revenue sill be better when his sales are greater than 16,000 per month.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "to check if this is true, calculate revenue in both plans for sale = 11,000 per month, 16,000 per month, and 21,000 per month.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "any amount below 16,000 or above 16,000 will do. \n" ); document.write( "i just picked 11,000 and 16,000 at random. \n" ); document.write( "no special reason.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "when sales are 11,000 per month, ...\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan A pays 800 + .10 * 11,000 = 800 + 1100 = 1900. \n" ); document.write( "plan B pays 900 + .15 * 5,000 = 900 + 750 = 1650. \n" ); document.write( "plan A pays better.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "when sales are 16,000 per month, ...\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan A pays 800 + .10 * 16,000 = 800 + 1600 = 2400. \n" ); document.write( "plan B pays 900 + .15 * 10,000 = 900 + 1500 = 2400. \n" ); document.write( "plan A and plan B pay the same.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "when sales are 21,000 per month, ...\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "plan A pays 800 + .10 * 21,000 = 800 + 2100 = 2900. \n" ); document.write( "plan B pays 900 + .15 * 15,000 = 900 + 2400 = 3150. \n" ); document.write( "plan B pays better.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "the breakeven point is when sales are 16,000 per month. \n" ); document.write( "plan A pays better when sales are less than 16,000 per month. \n" ); document.write( "plan B pays better when sales are greater than 16,000 per month.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |