Question

Finn has recently been offered a part-time job as a salesperson at a local cell phone store. He has a choice of two different pay scales. The first option is to receive a base salary of $300 a week plus 10% of the price of the merchandise he sells. The second option is a base salary of $220 a week plus 18% of the price of the merchandise he sells. The average phone sells for $200, but accessories are also included in the merchandise sales. Which of these two options should Finn choose and why? Finn’s boss has agreed to give him a third salary option. This option includes a base salary of $160 plus 20% of the amount of merchandise he sells. Should Finn take the new offer? Why or why not?

Answer 1

suppose Finn sells merchandise worth $2000 in a week. in the first option he will get a commission of $200, added to his base salary of $300, totaling to $500. the second option would give him a total of $580, and the third would give him $560. Finn should take the second offer. he will be motivated to work as hard as possible to make sales, as this will give him the best commission. and even if he fails to make good sales, $200 is a fair amount to take home.