Question

Marcus can choose between a monthly salary of $1,250 plus 4.5% of sales or $2,600 plus 2% of sales. He expects sales between $5,000 and $10,000 a month. Complete the explanation to show which salary option he should choose based on how much he could make.

Answer 1

From the given data it is clear that the Marcus should choose second option

Explanation:

Given as :

The first salary offer = $1,250 + 4.5% of sales

The second salary offer = $2,600 + 2% of sales

According to question

The expected sales between $5,000 to $10,00

Now, Let consider expected sales to be $5000

∴ The first salary offer = $1,250 + 4.5% × $5000

Or, The first salary offer = $1,250 +
`(4.5)/(100)` × $5000

Or, The first salary offer = $1,250 + $225

Or, The first salary offer = $1475

Similarly

The second salary offer = $2,600 + 2% of sales

∴, The second salary offer = $2,600 + 2% × $5000

Or, The second salary offer = $2,600 +
`(2)/(100)` × $5000

Or, The second salary offer = $2,600 + $100

Or, The second salary offer = $2700

Now, Let consider expected sales to be $10,000

∴ The first salary offer = $1,250 + 4.5% × $10000

Or, The first salary offer = $1,250 +
`(4.5)/(100)` × $10000

Or, The first salary offer = $1,250 + $450

Or, The first salary offer = $1700

Similarly

The second salary offer = $2,600 + 2% of sales

∴, The second salary offer = $2,600 + 2% × $10000

Or, The second salary offer = $2,600 +
`(2)/(100)` × $10000

Or, The second salary offer = $2,600 + $200

Or, The second salary offer = $2800

Hence From the given data it is clear that the Marcus should choose second option Answer