SOLUTION: When hired at a new job selling electronics, you are given two pay options:
Option A: Base salary of $14,000 a year with a commission of 10% of your sales
Option B: Base salary
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-> SOLUTION: When hired at a new job selling electronics, you are given two pay options:
Option A: Base salary of $14,000 a year with a commission of 10% of your sales
Option B: Base salary
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Question 1108247: When hired at a new job selling electronics, you are given two pay options:
Option A: Base salary of $14,000 a year with a commission of 10% of your sales
Option B: Base salary of $20,000 a year with a commission of 4% of your sales.
After what amount of your sales (in $) does option A produce a larger paycheck for you? Answer by ikleyn(52781) (Show Source):
Option A: Salary A = 14000 + 0.1*s;
Option B: Salary B = 20000 + 0.04*s,
where s is your sales amount.
Equilibrium: A = B, or
14000 + 0.1*s = 20000 + 0.04*s,
0.1*s - 0.04*s = 20000 - 14000,
0.06*s = 6000 ====> s = = = 100000.
Answer. Option A produces a larger paycheck after $100000 sales.
