Answer: To determine which offer Nicole should accept, let's compare the potential earnings from each job.
For High Tech:
Base salary: $500 per week
Commission: 5% of sales
For Best Computers:
Base salary: $400 per week
Commission: 7.5% of sales
To make a fair comparison, let's assume Nicole's sales for the week are represented by the variable "s."
Earnings at High Tech = Base salary + Commission = $500 + 0.05s
Earnings at Best Computers = Base salary + Commission = $400 + 0.075s
Now, we need to determine at what sales volume the earnings will be the same for both jobs. In other words, we want to find the value of "s" when:
$500 + 0.05s = $400 + 0.075s
To solve for "s," let's isolate the variable on one side:
0.05s - 0.075s = $400 - $500
-0.025s = -$100
Now, divide both sides by -0.025:
s = $100 / 0.025
s = $4000
So, if Nicole's sales for the week are $4000, her earnings will be the same at both jobs.
Now, let's consider different scenarios:
If Nicole's weekly sales are less than $4000, her earnings will be higher at High Tech because of the higher base salary.
If Nicole's weekly sales are greater than $4000, her earnings will be higher at Best Computers due to the higher commission rate.
Based on this analysis, Nicole should accept the job offer from Best Computers if she expects her weekly sales to be consistently higher than $4000. However, if she anticipates her weekly sales to be below $4000, she should go for the job offer from High Tech, where she has a higher guaranteed base salary.