Question

Donovan has offers for two sales jobs. Job A pays a base salary of $25,000 plus a 10% commission on sales. Job B pays a base salary of $30,000 plus 8% commission on sales.

a. How much would Donovan have to sell for the salary from Job A to exceed the salary from Job B?

b. If Donovan routinely sells more than $500,000 in merchandise, which job would result in a higher salary?

Answer 1

question a is $500,000

question b is job A

Answer 2

a. more than $250,000

b. Job A

Explanation:

a. If s represents Donovan's sales, his salary at the two jobs would have the specified relationship when ...

25,000 + 0.10s > 30,000+0.08s

Subtracting 25000+0.08s we get ...

0.02s > 5,000

Dividing by 0.02 gives ...

s > 250,000

The salary from Job A will exceed that from Job B if Donovan sells more than $250,000.

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b. $500,000 is more than $250,000, so the answer to part A applies.

Job A will result in a higher salary.