Question

John is considering accepting one of two sales positions. ABC Company offers a yearly salary of $45,000. XYZ Company offers a yearly salary of $38,000 plus a 2% annual commission on sales. For what amount of sales s is the compensation at XYZ Company greater than the salary at ABC Company?

Answer 1

For sales amounts greater than $350,000, the compensation at XYZ Company (including the commission) will be greater than the salary at ABC Company.