you are considering 2 jobs. one job pays $350 per week plus 2% commission on all sales. The second job pays $1200 per month and 2.5% commission on all sales. assuming sales of $1000,000 during the year, which job pays the best?
Assuming a 52-week-year --
350 * 52 = 18,200
1200 * 12 = 14,400
1,000,000 * 0.02 = ?
1,000,000 * 0.025 = ?
The job that pays monthly
job one pays the best
job that pays monthly
To determine which job pays the best, we need to calculate the total earnings for each job based on the given salary and commission rates. Let's start by calculating the total earnings for the first job:
1. Job 1:
- Weekly base salary: $350 per week
- 2% commission on all sales
To find the commission earned, we multiply the sales ($1,000,000) by the commission rate (2%):
Commission earned for Job 1 = $1,000,000 * 2% = $20,000
Now we can calculate the annual earnings for Job 1, which is the sum of the base salary and the commission earnings:
Annual earnings for Job 1 = Base salary + Commission earned = $350 * 52 + $20,000 = $36,200
Next, let's calculate the total earnings for the second job:
2. Job 2:
- Monthly base salary: $1200 per month
- 2.5% commission on all sales
To find the monthly commission earned, we multiply the sales ($1,000,000) by the commission rate (2.5%):
Commission earned per month for Job 2 = $1,000,000 * 2.5% = $25,000
Since the base salary is given monthly, we need to calculate the annual base salary by multiplying the monthly salary by 12:
Annual base salary for Job 2 = Monthly base salary * 12 = $1200 * 12 = $14,400
Now we can calculate the annual earnings for Job 2, which is the sum of the base salary and the commission earnings:
Annual earnings for Job 2 = Base salary + Commission earned = $14,400 + $25,000 = $39,400
Comparing the annual earnings for both jobs:
Annual earnings for Job 1 = $36,200
Annual earnings for Job 2 = $39,400
Based on these calculations, Job 2 pays the best in terms of annual earnings.