Question

Chris should select plan A for sales greater than $Chris can be paid in one of two ways. Plan A is a salary of $420 per month, plus acommission of 9% of sales. Plan B is a salary of $696 per month, plus commission of 5% ofsales. For what amount of sales is Chris better off selecting plan A?

Answer 1

PLan A = 420 + 0.09 x

Plan B = 696 + 0.05 x

Where: x = sales amount

If A is better than b

A > B

420 + 0.09 x > 696 + 0.05 x

Solve for x

0.09x- 0.05x > 696 - 420

0.04x > 276

x > 276 / 0.04

x > 6,900

Chris should select plan A for sales greater than $6,900