Question 635933: Macys and Dillards are both advertising positions for sales associates. The Macys position will pay $20,000 plus a 7% commission on all transactions completed by the sales associate. The Dillards position will pay $25,000 plus a 5% commission on all transactions completed by the sales associate. How much must be sold to make the Macys position the higher paying job?
CHOICES:
a. The sales associate should sell more than $100.
b. The sales associate should sell more than $1,000.
c. The sales associate should sell more than $25,000
d. The sales associate should sell more than $250,000.
Answer by DrBeeee(684)   (Show Source):
You can put this solution on YOUR website! Let M = income at Macys and
D = income at Dillards and
S = Sales in $
From the problem statement we have
M = $20,000 + 7% S
D = $25,000 + 5% S
In order for Macys income to exceed Dillards we have the inequality
M > D or
20,000 + 0.07S > 25,000 + 0.05S
Combining like terms we obtain
(0.07-0.05)S > 25,000-20,000
0.02S > 5,000
S > 5,000/.02
S > 250,000
Choose d, the sales associate should sell more than $250,000
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