SOLUTION: A recent college graduate has job offers for a sales position in two computer firms. Job "A" pays 25,000 per year plus 5% commission. Job "B" pays only 20,000 per year, but the co

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Question 164259: A recent college graduate has job offers for a sales position in two computer firms. Job "A" pays 25,000 per year plus 5% commission. Job "B" pays only 20,000 per year, but the commission rate is 10%. How much yearly business must the salesman do for the second job to be more lucrative?
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!
<.pre>
Let x=sales
We equate the 2 Jobs' rate: JobA=JobB
25000%2B0.05x=20000%2B0.10x
25000-20000=0.10x-0.05x
5000=0.05x
cross%285000%29100000%2Fcross%280.05%29=cross%280.05%29x%2Fcross%280.05%29
x=100000 ------> At this sales you can choose either Job (A or B) because the salary will just be the same. Sales higher than this, Job B will be lucrative (better)
Let's see, x=$101,000
Job A @ 5%:
25000%2B0.005%28101000%29=$30,050
Job B @10%:
20000%2B0.10%28101000%29=$30,100
See, the higher the sales on $100,000 more money you're getting on Job B.
Try $125,000? $150,000?
Thank you,
Jojo