Question

Joy is looking for employment in sales and is considering two job offers. Job A pays a base monthly salary of $2800 plus 12% commission on all sales. Job B pays a base monthly salary of $2400 plus 20% commission on sales over $4000. What amount of sales would Joy have to make in a month for the two jobs to pay the same amount? What would her pay be for the month?​

Answer 1

Explanation:

Let's set up equations to find out the amount of sales Joy would have to make in a month for the two jobs to pay the same amount. We can represent her monthly pay as a function of her sales.

For Job A:

Monthly Pay (A) = $2800 + 12% of Sales

For Job B:

Monthly Pay (B) = $2400 + 20% of Sales for Sales > $4000

Now, we need to find the point at which the monthly pay for both jobs is equal, so we'll set A equal to B:

$2800 + 0.12 * Sales = $2400 + 0.20 * Sales

Now, let's solve for Sales:

$2800 - $2400 = (0.20 - 0.12) * Sales

$400 = 0.08 * Sales

Sales = $400 / 0.08

Sales = $5000

So, for Joy to make the same amount in both jobs, she would need to make $5000 in sales in a month.

Now, let's calculate her pay for the month under both job offers:

For Job A (Sales = $5000):

Monthly Pay (A) = $2800 + 0.12 * $5000 = $2800 + $600 = $3400

For Job B (Sales > $4000, so it's $5000 in this case):

Monthly Pay (B) = $2400 + 0.20 * $5000 = $2400 + $1000 = $3400

So, if Joy makes $5000 in sales in a month, she will earn $3400 under both Job A and Job B.