A person applying for a sales position is offered an alternative salery plan.
Plan A- A base salery of $600 per month plus a commission of 4% of the gross value for the month
Plan B- A base salery of $700 per month plus a commission of 6% of the gross sales of the month in excess of $10,000.
A) For each plan, formulate a function (an equation) that expresses monthly earings as a function of gross sales (x)
B) For what gross sales value is Plan B preferable?
a. Value=600 + .04GV
is the first one. write the second plan B Value equation, then to find the GV where they are equal, set the two equations equal.
For Plan B, the monthly earnings can be expressed as a function of gross sales (x) using the following equation:
Value = 700 + 0.06(GV - 10,000)
To find the gross sales value where Plan B becomes preferable, we need to set the two equations (Plan A and Plan B) equal to each other and solve for GV:
600 + 0.04GV = 700 + 0.06(GV - 10,000)
Step 1: Distribute 0.06 to the terms inside the parentheses in the Plan B equation:
600 + 0.04GV = 700 + 0.06GV - 600
Step 2: Combine like terms:
0.04GV = 100 + 0.06GV
Step 3: Move all terms with GV to one side of the equation:
0.04GV - 0.06GV = 100
Step 4: Simplify the left side:
-0.02GV = 100
Step 5: Divide both sides by -0.02:
GV = 100 / -0.02
Simplifying further, we get:
GV = -5000
Therefore, Plan B becomes preferable when the gross sales value exceeds $5,000.