Question

Shawn has been hired as a sales associate Horizon Mobile Phone Company. He has two salary options. He can either receive a fixed salary of $750.00 per week or a salary of $400.00 per week plus an 8% commission of his weekly sales. Which solution set among the options below represents the dollar amount of sales that he must generate each week in order for the option with commission to be the better choice? s s s > $4,375.00 s > $9,375.00

Answer 1

Shawn must generate over $4,375 in weekly sales for the commission-based salary to surpass the fixed salary of $750. The correct solution is s.

Step-by-step explanation:

To determine which salary option is better for Shawn, we need to compare the total earnings from each option based on his weekly sales. Option 1 gives Shawn a fixed salary of $750.00 per week. Option 2 provides a base salary of $400.00 per week plus an 8% commission on his weekly sales. To find the break-even point, we set the weekly earnings from both options equal to each other:

750 = 400 + 0.08s

Where s represents the dollar amount of Shawn's weekly sales. Solving for s, we subtract $400 from both sides:

350 = 0.08s

Now, divide both sides by 0.08 to solve for s:

s = 350 / 0.08
s = 4375

Therefore, Shawn must generate more than $4,375 in sales each week for the commission option to be the better choice. The correct solution set that represents the weekly sales for the commission option to be better is s.