Question

Shawn has been hired as a sales associate Horizon Mobile Phone Company. He has two salary options. He can either receive a fixed salary of $750.00 per week sales or a salary of $400.00 per week plus an 8% commission of his weekly sales. Which solution generate each week in order for the option with commission to be the better choice?

Answer 1

Above $4375, commission would give him more money.

Explanation:

Shawn has two salary options.

He can either receive a fixed salary of $750.00 per week sales or a salary of $400.00 per week plus an 8% commission of his weekly sales.

Let the sales be represented by y. We get the following equation to check when both gets equal.

`750=400+0.08y`

=>
`0.08y=750-400`

=>
`0.08y=350`

y = 4375

y = $4375. At this much sales amount, either salary or commission would be the same.

Above $4375, commission would give him more money.