clarence is about to publish a new book titles change is inevitable, exept from a vending machine. The publisher has given him two options: recieveing $10,000 up from and 5% of the sales of the book or $25,000 up front and 3% of the sales of the book. What do the sales have to be for clarence to make the same amount from each option?

Question

clarence is about to publish a new book titles change is inevitable, exept from a vending machine. The publisher has given him two options: recieveing $10,000 up from and 5% of the sales of the book or $25,000 up front and 3% of the sales of the book. What do the sales have to be for clarence to make the same amount from each option?

Answer 1

Let's denote the total sales of the book as S.

For the first option, Clarence will receive $10,000 upfront and 5% of the sales. Therefore, his earnings will be:

$10,000 + 0.05S

For the second option, Clarence will receive $25,000 upfront and 3% of the sales. Therefore, his earnings will be:

$25,000 + 0.03S

For Clarence to make the same amount from each option, we can set the two earnings equations equal to each other:

$10,000 + 0.05S = $25,000 + 0.03S

Subtract 0.03S from both sides:

$10,000 + 0.02S = $25,000

Subtract $10,000 from both sides:

0.02S = $15,000

Divide by 0.02:

S = $15,000 / 0.02 = $750,000

Therefore, the sales have to be $750,000 for Clarence to make the same amount from each option.