Question

A salesman starts working at $40 per hour with two payment options: Option 1 is an hourly wage of $19, and Option 2 is a commission rate of 8% on weekly sales. Which payment option will result in higher earnings if the weekly sales amount to $2,000?

Answer 1

Option 1, the hourly wage of $19, results in higher weekly earnings ($760) compared to Option 2, the 8% commission on $2,000 in weekly sales, which totals to $160.

Step-by-step explanation:

The student is seeking assistance in comparing two payment options given a certain amount of weekly sales to determine which payment method results in higher earnings. To solve this, we need to compare the total income from each option for the same amount of weekly sales. Assuming the salesperson works 40 hours a week, here's a breakdown using the given figures:

Option 1 (Hourly Wage):
40 hours × $19 per hour = $760

Option 2 (Commission Rate):
8% of $2,000 weekly sales = $160

In this scenario, the hourly wage (Option 1) provides the salesperson with $760, which is substantially higher than the $160 earned from the 8% commission (Option 2) on $2,000 in weekly sales.