Question

Becky a sales women is offered two salary plans. Plan 1 is 400 per week salary plus 2% commission sales. Plan 2 is a 300 per week salary plus a 18% commission of sales. How much would Becky need to make in sales for the salary to be the same from both plans?

Answer 1

Let the commission sales = X

Salary Plan 1

salary per week = $400

commission sales = 2%

`\text{Commision sales = 2\%}* X=\text{ \$0.02X}`

Salary Plan 2

salary per week = $300

commission sales = 18%

`\text{ Commission sales = 18\%}* X=\text{ \$0.18X}`

Becky's salary for both plans (inclusive of commission sales) would be:

Plan 1:

`\text{ \$400+0.02X}`

Plan 2:

`\text{ \$300+0.18X}`

In order to find how much Becky needs to make in sales for salary to be the same from both plans would be:

`\begin{gathered} \text{ \$400+0.02X= \$300+0.18X} \\ \text{collect like terms} \\ 0.18X-0.02X=400-300 \\ 0.16X=100 \\ X=(100)/(0.16)=625 \end{gathered}`

Therefore, the commission sales should be $625