trevor has just finished writing a deeply profound book titled, the longer i live, the older i get. the publisher has given him two options: receiving $20,000 up front and 8% of the sales of the book or $50,000 up front and % of the sales of the book. What do the sales have to be for trevor to make the same amount for each option
Let x be the sales of the book.
Option 1: $20,000 up front + 0.08x
Option 2: $50,000 up front + 0.05x
To make the same amount in each option, we set the two expressions equal to each other:
$20,000 + 0.08x = $50,000 + 0.05x
0.08x - 0.05x = $50,000 - $20,000
0.03x = $30,000
x = $30,000 / 0.03
x = $1,000,000
Therefore, Trevor would have to make $1,000,000 in sales in order to make the same amount for each option.