Question

Javy is offered a new job selling souvenir baseballs. He has two options:

Option I: base salary of $30,000 with a commission of 20% of his sales

Option II: base salary of $36,000 with a commission of 4% of his sales

How much money would he need to earn in sales in order for Option I to produce a larger income?

Answer 1

Javy would need to earn more than $37,500 in sales for Option I to produce a larger income.

Step-by-step explanation:

To determine how much money Javy would need to earn in sales for Option I to produce a larger income, we can set up an equation. Let x represent the sales amount.

For Option I, the income is given by the equation: Income I = $30,000 + 20% * x

For Option II, the income is given by the equation: Income II = $36,000 + 4% * x

To find the sales amount at which Income I is larger than Income II, we can set up the inequality: $30,000 + 20% * x > $36,000 + 4% * x

Simplifying the inequality, we get: $6,000 > 16% * x

Dividing both sides by 16%, we get: $6,000 / 16% > x

Converting 16% to decimal form, we have: $6,000 / 0.16 > x

Solving for x, we find that Javy would need to earn more than $37,500 in sales for Option I to produce a larger income.

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