Each sales associate at an electronics store has a choice of two salary options. $115 per week plus 9.5% commission on the associate's total tax sales or $450 per week with no commission. The average of the total sales amount for each associate last year was $125,000. Based on this average what is the difference between the two thousands each year?
322835/52-23400=-893965/52
To calculate the difference in thousands between the two salary options, we need to calculate the commissions earned by each associate and compare it to the fixed salary option.
First, let's calculate the commission earned by an associate. The commission is calculated as 9.5% of the total tax sales. In this case, the average total sales amount for each associate is $125,000. So, the commission earned by an associate is:
Commission = 9.5% * $125,000
Next, let's calculate the difference in salary options.
Option 1: Salary of $115 per week + Commission
Option 2: Salary of $450 per week with no commission
To calculate the annual salary for each option, we multiply the weekly salary by 52 weeks.
Annual salary for Option 1: ($115 per week * 52 weeks) + Commission
Annual salary for Option 2: $450 per week * 52 weeks
Now, let's substitute the values and calculate the difference in thousands between the two options:
Difference = (Annual salary for Option 2 - Annual salary for Option 1) / 1000
By substituting the appropriate values, you can calculate the difference.
$450 * 52 = ?
Assuming that "tax" was inserted in error:
[$115(52) + .095($125,000)/52] = ?
Subtract one from the other.