SOLUTION: Suppose a company offers you a sales position with your choice of two method of determining your yearly salary.One method pays $12600 plus a bonus 2% of your sales .The other metho

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Question 154811This question is from textbook
: Suppose a company offers you a sales position with your choice of two method of determining your yearly salary.One method pays $12600 plus a bonus 2% of your sales .The other method pays a straight 8% commission on your sales .For what yearly sales amount is it better to choose the fist method? This question is from textbook

Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!
Let x= yearly sales
We equate both offer:
12600+2%(x)=8%(x)
12600=0.08x-0.02x
12600=x%280.08-0.02%29
cross%2812600%29210000%2Fcross%280.06%29=x%2Across%280.06%29%2Fcross%280.06%29
x=210000 -------------> the yearly sales should not exceed this much if you want to choose PLAN 1 (w/ 2% commission). IF sales go over $210,000, then plan 2 (w/ 8%) is a better choice --- MORE MONEY. Try $220,000? $250,000? You'll see.
Thank you,
Jojo