Question 403086
plan 'A' total compensation = x
plan 'B' total compensation = y

let z = total sales

x = 500 + 0.04z
y = 400 + 0.05z

the better offer DEPENDS on the total sales that Kenisha makes

the point at which the two plans are the same is found by making the x and y equal:

500 + 0.04z = 400 + 0.05z

100 = 0.01z

z = 10,000

so 

if Kenisha sells EXACTLY $10,000 per month both plans give her the same compensation so no plan is "better"

if Kenisha sells LESS than $10,000 per month, then plan 'A' is "better" for her in terms of compensation. That is because the $100 that she gains on the base salary from plan 'A' is bigger than the 1% sales commission she loses on total sales (which is less than $10,000)

if Kenisha sells MORE than $10,000 per month, then plan 'B' is "better" for her in terms of compensation. That is because the extra 1% sales commission she makes on total sales (which is more than $10,000) is more than the $100 loss she takes on the base salary amount