Question

A salesperson works 40 hours per week at a job where he has two options for being paid. Option A is

an hourly wage of $22. Option B is a commission rate of 4% on weekly sales. How much does he
need to sell this week to earn the same amount with the two options?


thank you so much!

Answer 1

His salary for 40 hours per week with an hourly rate is hours x the rate:

40 hours x $22 per hour = $880 per week.

If he is paid commission, to make the same , he needs to make $880 iin commissions.

The commission rate is 4%, to find how much sales is needed divide the amount he needs to make ( $880) by the rate:

880/ 4% = 880/ 0.04 = $22,000

He needs to sell $22,000