Question

You are offered two different sales jobs. The first company offers a straight commission of 8% of the sales. The second company offers a salary of $ 500 per week plus 3% of the sales. How much would you have to sell in a week in order for the straight commission offer to be at least as good

Answer 1

You would have to sell 10,000 in a week for the straight commission offer to be at least as good.

Explanation:

From the information provided, you can find how much you would have to sell in a week in order for the straight commission offer to be at least as good by establishing an equation in which the amount earned in the first company is equal to the amount earned in the second company:

0.08x=500+0.03x, where x is the amount of sales

Now, you can solve for x:

0.08x-0.03x=500

0.05x=500

x=500/0.05

x=10,000

According to this, the answer is that you would have to sell 10,000 in a week for the straight commission offer to be at least as good.