Question 645252: Been out of school for a long time. Need detailed, step-by-step assistance in solving the following problem:
Base salary = $2000 per month
Commission paid at 8% on all sales over $7000 during the month
Based on the above info, answer question: How much must the salesperson sell in one month to earn a total of $4000 for the month?
Is this break-even analysis?
Answer by MathTherapy(10552)   (Show Source):
You can put this solution on YOUR website! Been out of school for a long time. Need detailed, step-by-step assistance in solving the following problem:
Base salary = $2000 per month
Commission paid at 8% on all sales over $7000 during the month
Based on the above info, answer question: How much must the salesperson sell in one month to earn a total of $4000 for the month?
Is this break-even analysis?
Let the amount of sales he needs to have, in order to earn $4,000 for the month, be s
Then:
 , if s > $7,000
 , if 
In order to make $4,000 then $2,000 will be base and the other $2,000 will be from commissions. This means we use the 1st equation, since he definitely will have to have a sales amount that exceeds $7,000:
E(s) = 2,000 + .08s, with E(s) = 4,000
We then have:
4,000 = 2,000 + .08s
4,000 - 2,000 = .08s ------ Solving for s, or sales amount
2,000 = .08s
s, or amount of sales =  , or $
No, break-even analysis is the point at which revenues equal expenses.
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