Question 150027
For what amount of monthly sales is "Option A"  a better choice than "B"?
For this we need to equate the 2 eqn's. and we'll find out the "minimum" monthly sales it should be for "Option A" to be a better choice, oks.
.
First, let's assigned {{{x}}}= monthly sales. So,
$1950+10%(x) = $2420+6%(x)
{{{0.10x-0.06x=2420-1950}}}
{{{cross(0.04)x/cross(0.04)=470/0.04}}} 
x=$11,750 -----------> The monthly sales should be MORE than this amount
in order "Option A" be a better choice.
Let's check.
If sales "x" = $11,750
Option A= $1950+10%($11750) = $3125
Option B= $2420+ 6%($11750) = $3125
See, the sales are equal.
.
If sales "x" = $11,749
Option A= $1950+10%($11749) = $3124.90
Option B= $2420+ 6%($11749) = $3124.94
See, if the sales just go down by $1.00 on the minimum $11,750, Option B is still better.
.
If sales "x" = $11,751  ($1 up!)
Option A = $1950+10%($11751) = $3125.10
Option B = $2420+ 6%($11751) = $3125.06
There you go, it shows if the monthly sales start to go up on $11,750 ---> the better choice Option A will be, more money.Try it if "x" go by $15,000? $20,000?
Thank you,
Jojo