How did I approach this problem ?
You are offered two different sales jobs. The first company offers a straight commission of 3% of the sales. The second company offers a salary of $ 420 per week plus 2% of the sales. How much would you have to sell in a week in order for the straight commission offer to be at least as good
http://www.jiskha.com/display.cgi?id=1283213115
Hi, I'm a 10th grade student and this is how I think the problem would be solved...
So let x = the amount you need to sell
.03x = $420 + .02x
.01x = $420
x = $42,000
So you would need to sell at least $42,000 in the first job be equal to the second job.
Hope this helps!
To determine how much you would have to sell in a week for the straight commission offer to be at least as good as the salary offer, you need to find the threshold sales amount where the earnings from the two offers are equal.
Let's break down the two offers:
1. Straight Commission:
- Commission rate: 3% of sales
- No base salary
2. Salary + Commission:
- Salary: $420 per week
- Commission rate: 2% of sales
To find the sales threshold, we need to set up an equation where the total earnings from the straight commission offer equal the total earnings from the salary + commission offer.
Let's assume the sales amount in a week is represented by 'x'.
For the straight commission offer, the earnings will be 3% of 'x':
Earnings from straight commission offer = 0.03x
For the salary + commission offer, the earnings will be the salary plus 2% of 'x':
Earnings from salary + commission offer = $420 + 0.02x
Now, we can set up the equation:
0.03x = $420 + 0.02x
To find 'x', we need to isolate the variable on one side of the equation. Subtracting 0.02x from both sides of the equation:
0.03x - 0.02x = $420
0.01x = $420
Dividing both sides of the equation by 0.01:
x = $420 / 0.01
x = $42,000
Therefore, you would have to sell at least $42,000 in a week for the straight commission offer to be at least as good as the salary + commission offer.