Question

As a sales team member, you earn 2% commission on any sales that exceed the $2500 minimum threshold. The amount of money you earn commissions equals E(x)=x-2500. The total commission you earn is C(x)=0.02x . What composite function would you use to calculate your commission earned if you sold $6000?

Answer 1

$70

Explanation:

For this problem, we want to find the commission we will earn on a sale of $6000. We are given that we earn commission after $2500 and we earn 2% of that. For this, we are given the two functions E(x) and C(x).

E(x) = x - 2500

C(x) = 0.02x

To find what we will actually earn we need to compute C(E(x)). So let's do that below.

C(E(x)) = 0.02(x-2500)

C(E(x))= 0.02x - 50

So now that we have the equation to compute our earned commission, let's plug in our $6000 sale.

C(E(6000)) = 0.02(6000) - 50

C(E(6000)) = 70

So on a $6000 sale, we will earn $70.

We can verify this number by computing each requirement separately.

E(6000) = 6000 - 2500 = 3500

C(3500) = 0.02(3500) = 70

Cheers.