Question

You are offered two jobs selling college textbooks. One company offers an annual salary of $30,000 plus a year-end bonus of 1% of your total sales. The other company offers an annual salary of $25,000 plus a year-end bonus of 2% of your total sales. How much would you need to sell in a year to make the second offer the better offer?

Answer 1

To make the second offer the better offer, you would need to sell more than $500,000 in a year.

Step-by-step explanation:

To determine the amount you would need to sell in a year to make the second offer the better offer, we need to set up an equation and solve for the sales amount.

Let x be the total sales amount. For the first offer, the bonus is 1% of x, and for the second offer, the bonus is 2% of x.

First offer: $30,000 + 0.01x

Second offer: $25,000 + 0.02x

To make the second offer the better offer, we set up the following equation:

$25,000 + 0.02x > $30,000 + 0.01x

Simplifying the equation, we get:

0.02x - 0.01x > $30,000 - $25,000

0.01x > $5,000

x > $5,000/0.01

x > $500,000

Therefore, you would need to sell more than $500,000 in a year for the second offer to be the better offer.