Each sales associate at an electronics store has a choice of the two salary options shown below:
$115 per week plus 9.5% commission on the associate’s total sales
$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 salary options each year? (1 year = 52 weeks)
(a) $4,262.11
(b) $5,545.00
(c) $10,956.90
(d) $11,525.00
52*115 + 0.095*125000 = ____
52*450 = ____
so subtract to find the difference
Its B
To calculate the first option, we need to find 9.5% of the average sales amount.
9.5% of $125,000 = 0.095 * $125,000 = $11,875
Now, let's calculate the total salary for the first option:
Total salary = Base salary + Commission
= $115 per week + $11,875 per year
Since there are 52 weeks in a year, the total salary for the first option is:
Total salary = $115 * 52 + $11,875 = $5,980 + $11,875 = $17,855
Now, let's calculate the total salary for the second option:
Total salary = $450 per week * 52 weeks = $23,400
Finally, let's find the difference between the two salary options:
Difference = Total salary for the first option - Total salary for the second option
= $17,855 - $23,400
Calculating the difference, we get:
Difference = -$5,545
Therefore, the answer is (b) $5,545.00
To find the difference between the two salary options each year, we need to calculate the annual salary for each option and then find the difference between them.
Option 1: $115 per week plus 9.5% commission on total sales
Annual salary = ($115 per week * 52 weeks) + (9.5% commission * $125,000)
To calculate the commission, we multiply the total sales amount ($125,000) by the commission rate (9.5%) and convert it to a decimal by dividing by 100:
Commission = ($125,000 * 9.5%) / 100
Now we can substitute the values into the equation for Option 1:
Annual salary = ($115 * 52) + [($125,000 * 9.5%) / 100]
Option 2: $450 per week with no commission
Annual salary = $450 * 52
Now let's calculate the values:
Option 1:
Annual salary = ($115 * 52) + [($125,000 * 9.5%) / 100]
Annual salary = $5,980 + $11,875
Annual salary = $17,855
Option 2:
Annual salary = $450 * 52
Annual salary = $23,400
To find the difference between the two options, we subtract the annual salary of Option 2 from the annual salary of Option 1:
Difference = Option 1 annual salary - Option 2 annual salary
Difference = $17,855 - $23,400
Difference = -$5,545
The difference between the two salary options each year is -$5,545.00. However, the given answer choices are all positive values. Therefore, it is likely there was a mistake in the calculation or the answer choices provided. Please recheck the options or recalculate the difference.