Open Ended
Electronic City pays its starting employees $8.50/hour. After 6 months, employees get a choice of how they would like to be paid. They can choose from one of the following plans:
Plan A: Remain at $8.50/hr, working 40 hours a week.
Plan B: $200/wk plus 3% commission on all of the employee's sales, working 40 hours a week.
Plan C: $100/wk plus 5% commission on all of the employee's sales, working 40 hours a week.
Martina has been working for Electronic City for 6 months and is trying to decide what salary plan she should choose. Over the last 2 months her sales have remained steady between $4,500 and $5,500 per 40 hour week.
-Which plan do you think Martina should choose? Explain why. Make sure to provide mathematical resons and/or specific examples to support your conclusion.
-Using the plan you chose, how much would Martina make in a week if she sold $5,100 worth of merchandise?
This is what I got:
Plan A- $8.50*$40.00=$340.00
Plan B- $200+.03*$4,500=$135.00+$200.00=$335.00
Pan C- $100+.05*$4,500=$4,500*.05=$225+$100= $325.00
Note: I don't understand for why in plan c did they multiply $4500*.05 when in planB they added $135.00+$200.00
For the second Question I got:
(I choose Plan B and that's why I started off with plan B.)
Plan B- $200+.03*$5100=$153.00+$200=$353.00
Pan C- $100+.05*$5100=$255.00+$100=$355.00
NOTE:
I don't undrestand how I got any of these answers. Can you help me understand how I got these answers?
Can you help me explain it into words how I got these answers
ok, let's take
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Plan B: $200/wk plus 3% commission on all of the employee's sales, working 40 hours a week.
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She thinks she can count on selling at least $4500 per week, but on a good week, $5500
So she figures she can make her basic $200 per week plus the 3% commission on her $4500 sales.
3% is 3/100 = .03
so take .03 times 4500 = 135 in commissions
135 plus her basic 200 per week =
200 + 135 = $335 per week.
BUT she might sell $5500 per week
in that case she would get
200 + .03 * 5500 =
200+165
= $365
so in a bad week under plan B she would make $335 and in a good week she would make $365.
on the average she might make (335+365)/2 = $350 per week, which is better than plan A which was 340 per week. However on bad weeks she would take home less than the basic plan A pay.
Sure, I can help explain how you got these answers step by step.
First, let's examine the calculation for Plan B. In this plan, Martina receives a fixed weekly salary of $200, and also earns a 3% commission on all her sales. To calculate the commission, we multiply the amount of her sales by 0.03. This gives us $5100 * 0.03 = $153. Then, we add the commission to her base salary: $153 + $200 = $353. So, if Martina sells $5100 worth of merchandise in a week, she would make $353 under Plan B.
Next, let's consider the calculation for Plan C. Similar to Plan B, Martina receives a fixed weekly salary of $100, and earns a 5% commission on her sales. To calculate the commission, we multiply the amount of her sales by 0.05. This gives us $5100 * 0.05 = $255. Then, we add the commission to her base salary: $255 + $100 = $355. So, if Martina sells $5100 worth of merchandise in a week, she would make $355 under Plan C.
Regarding your confusion about multiplying $4500 by 0.05 in Plan C versus adding $135 to $200 in Plan B, it's important to understand the difference in how these calculations are performed. In Plan C, the commission rate is 5%, so we need to find 5% of $4500, hence the multiplication. In Plan B, the commission rate is 3%, so we calculate 3% of $4500 to get the commission amount ($135), and then add it to the base salary ($200).
In summary, the calculation for Plan B involves multiplying the sales amount by the commission rate, while the calculation for Plan C involves multiplying the sales amount by the commission rate and adding the base salary.