<PRE><B>Question 1139889</B>
method A.


250 per week retainer plus 2.5% of sales.


method B.


no retainer plus 3.5% of sales.



equation for method A.


r = 250 + .025 * x


equation for method B.


r = .035 * x


when the revenues are equal, 250 + .025 * x = .035 * x


subtract .025 * x from both sides of the equation to get 250 = .01 * x


solve for x to get x = 250 / .01 = 25000.


the two methods break even when the store makes sales equal to 25000.


when that happens, r = 250 + .025 * 25000 = 875 and r = .035 * 25000 = 875.


you would be better off with method A when the average amount of sales per week is less than 25000.








</PRE>