Question

You receive two sales job offers. One company offers a straight commission of 8% of sales. The other company offers a salary of $560 per week plus 2% of sales. How much would you have to sell in a week in order to make the straight commission job offer better? (Round your answer to the nearest cent.)

Answer 1

Answer: You would have to sell $9,333.33 for the first job to be better than the second job offer.

Explanation: We can build in equation with the salary data that we have, it would look like this:

0.08x = 560 + 0.02x

If we solve this equation, x will be the amount of a week sellings that one would have to do in order for the straight comission job to be equal or better than the fixed salary + comission. So,

0.08x - 0.02x = 560

0.06x = 560

x = 560/0.06

x = 9,333.33

Therefore, for the straight comission job to be better than the other one, the worker would have to sell more than $9,333.33.