Question

Lee was hired to sell cars. He must choose a commission plan for his Plan B Lee gets a base salary of $30, 195 a year plus a $826 commission for each car he selle payment. He can choose PlanA tan B.or Pian A lee gets a bace salary of $27 3as a year plus a $1.044 commission for each car he sells, Ir Use a system of equations to model Lee's situation and choose the best response below O If Lee selts 14 cars, he earns $43,005 with Plan A O If Lee sell:14 or more cars, Plan A is a better plan because he earns more money m cars, Plan A is a better plan because he eans more money in one Wear 14 or more cars, Plan B is a better plan because he eams more money in one year O ifLee sells 14 or more cars, Plan B is a better plan because O If Lee sells 14 cars, he earns $42,585 with Plan B. O If Lee sells exactly 16 cars, he earns the exact same amount more with either plan

Answer 1

Plan A is a better plan if Lee sells more than 13 cars.

Plan B is a better plan if Lee sells 13 or less cars.

Explanation:

The question is no written correctly: "Lee was hired to sell cars. He must choose a commission plan for his Plan B Lee gets a base salary of $30,195 a year plus a $826 commission for each car he selle payment. He can choose PlanA tan B.or Pian A lee gets a bace salary of $27,345 a year plus a $1.044 commission for each car he sells..."

Both plans are linear.

We can express each plan as a linear function.

Plan A:
`E=1044C+27345`

Plan B:
`E=826C+30195`

The Plan A is better when he sells many cars (better comission), and the Plan B is better when he sells a few (better fixed income).

The breakeven point is when both plans pay the same:

`E=1044C+27345=826C+30195\\\\(1044-826)C=30195-27345\\\\218C=2850\\\\C=2850/218=13.07`

Plan A is a better plan if Lee sells more than 13 cars.

Plan B is a better plan if Lee sells 13 or less cars.