Final answer:
The range of Floyd's annual income, which consists of his base salary and commissions for selling X-ray machines, starts at $65,000 and increases with the number of machines sold. The range extends beyond the fixed base salary amount.
Step-by-step explanation:
The question asks, "What is the range of Floyd's annual income if he earns a base salary plus commission for every X-ray machine he sells?" To answer this, we need to understand that range in this context refers to the variation or spread of values that Floyd's income could potentially have throughout the year. His base salary is given as $65,000 a year, which is the minimum amount he will make, as it does not count any commissions from sales.
Since Floyd's income includes commissions for each X-ray machine sold, his total income will exceed $65,000 based on the number of machines (M) he sells. Therefore, his annual income (I) is not fixed and can vary. The range of his income will start at $65,000 and extend upwards depending on how many machines he sells and what the commission per sale is. it could potentially be above $65,000.
For comparison, let's look at some annual income levels and corresponding taxes from the information provided, which allows us to evaluate Floyd's potential income against different income brackets:
- Up to $18,150
- $18,151 to $73,800
- $73,801 to $148,850
- $148,851 to $226,850
- $226,851 to $405,100
- $405,101 to $457,600
- $457,601 or more
Floyd's base salary is above the lower brackets and could potentially move him into higher tax brackets depending on his sales success. With this in mind, Floyd's decision will likely balance between his fixed salary and potential commissions.