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Each sales associate at an electronics store has a choice of two salary options shown below:

$115 per week plus 9.5% commission on total sales.
$450 per week with no commission.
The average total sales amount of each associate last year was $125,000. What is the difference between the two salary options each year?
a) $4,262.11
b) $5,545.00
c) $10,956.90
d) $11,525.00

User Lixas
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1 Answer

3 votes

Final answer:

The difference between the two salary options for a sales associate at an electronics store, given their average total sales last year, is $5,545.00 annually. This is calculated by comparing the total annual earnings with commission and without commission.

Step-by-step explanation:

The question involves calculating the difference between two salary options for a sales associate, given the average total sales amount of each associate last year. We need to consider the first option of a weekly salary of $115 plus a 9.5% commission on total sales of $125,000, and compare it with the second option of a flat weekly salary of $450 with no commission.

  • Weekly Salary: 52 weeks × $115 = $5,980
  • Commission: 9.5% of $125,000 = $11,875
  • Total Annual Salary with Commission: $5,980 + $11,875 = $17,855
  • Weekly Salary: 52 weeks × $450 = $23,400
  • Total Annual Salary with No Commission: $23,400

To find the difference between the two options:

Option 2 - Option 1 = $23,400 - $17,855 = $5,545.00.

Therefore, the difference between the two salary options each year is $5,545.00, which corresponds to option (b).

User Rahul Ranjan
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