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Karen can be paid in one of two ways for selling insurance policies:
Plan A:A salary of $750 per month, plus a commission of 10% of sales.

Plan B:A salary of $1000 per month, plus a commission of 8% of sales in excess of $2000.

For what amount of monthly sales is plan A better than plan B if we can assume that sales are always more than $2000?

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Chris

  1. Plan A: Salary $750 + .10 of sales
    Plan B: Salary $1,000 + .08 of sales > $2,000

    x = dollar amt of sales
    750 + .10x > 1000 + .08(x - 2000)
    750 + .10x > 1000 + .08x - 160
    750 + .10x > 840 + .08x
    0.02x > 90
    x > 4500

    Plan A better when sales > $4500

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    helper

  2. That was a huge help. Thank you!!!

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    Chris

  4. You're welcome :)

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    helper

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