You are offered two different sales jobs. The first company offers a straight commission of 9% of the sales. The second company offers a salary of $ 260 per week plus 4% 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?
you want to find when
.09s = 260 + .04s
So, just solve for s.
520
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 plus commission offer, you can set up the following equation:
0.09x ≥ 260 + 0.04x
Here, x represents the amount of sales in a week.
Let's solve the equation step-by-step:
1. Distribute the 0.04 to both terms on the right side:
0.09x ≥ 260 + 0.04x
2. Combine like terms on the right side:
0.09x ≥ 0.04x + 260
3. Subtract 0.04x from both sides to isolate the x term on the right side:
0.09x - 0.04x ≥ 260
Simplifying the left side:
0.05x ≥ 260
4. Divide both sides by 0.05 to solve for x:
x ≥ 260 ÷ 0.05
Calculating:
x ≥ 5200
Therefore, you would need to sell at least $5200 in a week for the straight commission offer to be at least as good as the salary plus commission offer.
To compare the two sales job offers and determine at what sales amount the straight commission offer becomes more lucrative, we need to set up an equation.
Let's denote the weekly sales amount as 'x'.
For the first company, the commission is a straight 9% of the sales. So the commission amount is given by: 0.09x.
For the second company, the salary is fixed at $260 per week, and there's an additional 4% commission on sales. So the total earning from the second company is given by: $260 + 0.04x.
To find the point where the straight commission offer becomes better, we need to find the sales amount 'x' where the earnings are equal for both companies.
Setting up the equation: 0.09x = $260 + 0.04x.
Now we solve for 'x':
0.09x - 0.04x = $260
0.05x = $260
x = $260 / 0.05
x = $5200
Therefore, you would need to sell at least $5200 worth of goods in a week for the straight commission offer to be at least as good as the second company's offer.