posted by Chris on .
Karen can be paid in one of two ways for selling insurance policies:
Plan A:A salary of $750 per month, plus a commission of 10% of sales.
Plan B:A salary of $1000 per month, plus a commission of 8% of sales in excess of $2000.
For what amount of monthly sales is plan A better than plan B if we can assume that sales are always more than $2000?
Plan A: Salary $750 + .10 of sales
Plan B: Salary $1,000 + .08 of sales > $2,000
x = dollar amt of sales
750 + .10x > 1000 + .08(x - 2000)
750 + .10x > 1000 + .08x - 160
750 + .10x > 840 + .08x
0.02x > 90
x > 4500
Plan A better when sales > $4500
That was a huge help. Thank you!!!
You're welcome :)