Chris can be paid in one of two ways. Plan A is a salary of $450 per month, plus a commission of 7% of sales. Plan B is a salary of $681 per month, plus a commission of 4% of sales. For what amount of sales is Chris better off selecting plan A?
Please help
450 + .07s ≥ 681 + .04s
Solve for s.
To determine for what amount of sales Chris is better off selecting Plan A, we need to compare the earnings under both plans.
Let's start by calculating Chris's earnings under Plan A.
Plan A consists of a fixed salary of $450 per month plus a commission of 7% of sales.
To calculate the commission, we multiply the sales by 0.07 (which is 7% in decimal form).
So, the earnings under Plan A can be calculated with the following formula:
Earnings_A = $450 + (0.07 * sales)
Now, let's calculate Chris's earnings under Plan B.
Plan B consists of a fixed salary of $681 per month plus a commission of 4% of sales.
Using similar calculations as before, the earnings under Plan B can be calculated with the following formula:
Earnings_B = $681 + (0.04 * sales)
To find the sales amount at which Chris is better off selecting Plan A, we need to compare the earnings of Plan A and Plan B.
We need to find the sales amount, let's say "x," where Earnings_A > Earnings_B.
$450 + (0.07 * x) > $681 + (0.04 * x)
Now, let's solve this inequality to find the sales amount:
0.07x - 0.04x > $681 - $450
0.03x > $231
x > $231 / 0.03
x > $7,700
Thus, for sales greater than $7,700, Chris is better off selecting Plan A.