Question

Kristin is promoting an upcoming play. She has two options for how she will be paid. Option A is an hourly wage of $7.00. Option B is a 5% commission on all money made during the play. She plans to work 2 days for 8 hours each day. How much money will the play need to bring in for both payment options to be equivalent?

Answer 1

$2,240

Explanation:

Answer 2

$2240.

Explanation:

Option A.

The option A implies a fixed amount of earning, if she is planning to work 2 days, 8 hours per day, then she will work 16 hours, if they pay $7 per hour. She will earn:

`\$7(16hr)=$112`

Option B.

The second option is to just earn by commission, a 5% on all money made.

So, the equivalent point would be model by the following expression:

`0.05x=112`

Where
`x` is the total amount of many, now we solve for
`x`:

`x=(112)/(0.05)=\$2240`

This means that if during the play they make $2240, Kristin would gain the same no matter what option she takes.

However, if they make less than $2240, then the option A is the best decision.