<PRE><B>Question 157482</B>
looks like the break even point is $4000 in sales in one week as follows:
200 + (.10)*x = 400 + (.05)*x
.10*x - .05*x = 400 - 200
.05*x = 200
x = 200/.05 = 4000
they are the same AT this point.
above this point, then Company A offer should be better.
to prove, take sales of $5000.
then .10*5000 + 200 should be greater than .05*5000 + 400.
calculating out we get
$500 + 200 = $700 for company A and $250 + $400 = $650 for company B which means company A is better when sales each week are above $4000.
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