Julia is offered a job selling advertising for two different companies. Company A offers a base salary of $30,000 per year plus a year-end bonus equal to 3% of her total sales. Company B offers a base salary of $25,000 per year plus a year-end bonus equal to 5% of her total sales. Which statement best describes the two offers?
Which statements?
jezzay13 2 years ago
MedalsCompany B pays better when total sales are less than $37,500, but company A pays better when total sales exceed $37,500.
Company B pays better when total sales are less than $250,000, but company A pays better when total sales exceed $250,000.
The two job offers for Julia can be described as follows:
1. Company A offers Julia a base salary of $30,000 per year, which is higher than Company B's base salary of $25,000 per year.
2. In terms of the year-end bonus structure, Company A offers Julia a bonus equal to 3% of her total sales, whereas Company B offers a bonus equal to 5% of her total sales.
3. To determine the total earnings for each job offer, Julia would need to factor in her potential sales. The actual earnings of each offer will depend on Julia's sales performance.
4. If Julia has high sales performance, the 3% bonus from Company A could lead to higher overall earnings compared to the 5% bonus from Company B if her sales are relatively low.
5. On the other hand, if Julia has consistently high sales, the 5% bonus from Company B may result in higher overall earnings compared to the 3% bonus from Company A.
In conclusion, the two offers present different bases salaries and bonus structures, and the ultimate earnings will depend on Julia's sales performance.
To determine which statement best describes the two job offers, we need to compare the total compensation for each offer. Let's calculate the total compensation for each company:
For Company A:
Base salary = $30,000 per year
Bonus = 3% of total sales
For Company B:
Base salary = $25,000 per year
Bonus = 5% of total sales
To make a fair comparison, we need to assume a certain level of sales for Julia. Let's assume she makes $1,000,000 in total sales for both companies.
For Company A:
Bonus = 3% of $1,000,000 = $30,000
Total compensation = Base salary + Bonus = $30,000 + $30,000 = $60,000
For Company B:
Bonus = 5% of $1,000,000 = $50,000
Total compensation = Base salary + Bonus = $25,000 + $50,000 = $75,000
Therefore, the total compensation for Company A is $60,000, and the total compensation for Company B is $75,000. The statement that best describes the two offers is that Company B offers a higher total compensation compared to Company A.