Question

you are considering 2 jobs. one job pays $250 per week, plus 4.5% commission on all sales. The second job pays $1,800 per month and 3% commission on all sales. assuming sales of $1,000,000 during the year, which job pays the best

Answer 1

The correct answer is A. Not only does $250 a week equal $1000 a month but the commission is also higher.

first job: $250wk = $1000 Month + .045 commission
= $12000 year + .045 commission
second job = $1800 Month + .03 commission
= $21600 year + .03 commission
commission based on sales of $1,000,000

1,000,000 times .045 = $45000
1,000,000 times .030 = $30000

FIRST JOB: $12,000 + $45,000 = $57,000
SECOND JOB: $21,600 + $30,000 = $51,600

The answer is definitely A.