Question

Marcus can choose between a monthly salary

of $1,500 plus 5.5% of sales or $2,400 plus 3% of sales. He expects sales

between $5,000 and $10,000 a month. Which salary option should he

choose? Explain

Answer 1

whatever% of anything is just (whatever/100) * anything.

well, if he goes with the 1500 plus 5.5%, when he has sales of say 5000, he gets 1500 plus 5.5% of 5000, how much is that? (5.5/100) * 5000, or 275 bucks, so he'll be making 1500 + 275 or 1775.

now, if he instead goes with 2400 plus a lowly 3%, on 5000, that'll be (3/100) * 5000 or 150, so he'll be making 2400 + 150, or 2550.

now with sales of 10000 on the first salary plan, is (5.5/100) * 10000 or 550, plus 1500, is 2050.

and with the second salary plan, (3/100) * 10000 or 300, plus 2400, 2700.

so.... which one would you chose then?