Question

16. Each sales associate at an electronics store has a choice of the two salary options shown below. (3 pts)•$215 per week plus 8.5% commission on the associate's total sales• $550 per week with no commissionThe average of the total sales amount for each associate last year was $125,000. Based on this average, what isthe difference between the two salary options each year? (52 weeks = 1 year)Show your work.

Answer 1

The difference between the two salary options is $6,795

Step-by-step explanation:

The sales associates' payments options can be written as follow:

Associate 1:

For the earnings of $215, he earns:

$215 * 52 = $11,180

With commission, he earns 0.85% of $125,000 (The average given)

0.085($125,000) = $10,625

He earns:

$11,180 + $10,625

= $21,805

Associate 2

Earns $550 per week

For 1 year, he earns

$550 * 52 = $28,600

Now, the difference in their payments options is:

$28,600 - $21,805

= $6,795