SOLUTION: Suppose w company offers you a sales position with a choice of two methods of determining your yearly salary. One method pays 35000 dollars plus a bonus of 3% of your yearly sales.
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Question 999046: Suppose w company offers you a sales position with a choice of two methods of determining your yearly salary. One method pays 35000 dollars plus a bonus of 3% of your yearly sales. The other method pays a straight 5% comission on your sales. For what yearly sales amount is it better to choose the first method. Answer by macston(5194) (Show Source):
You can put this solution on YOUR website! .
We find the point when fee plus commission equals
commission only. Greater sales favor higher commission,
lower sales favor fee + commission:
.
S=sales amount
.
(0.03)S+$35000=(0.05)S
$35000=(0.02)S
$1750000=S
.
When sales equals $175000, both methods pay the same.
ANSWER: The first method pays more with sales less than $1750000.
