Answer:
He should choose the option that pays $2000 plus 2% of sales
With option 1 he would make $1550 to $1850
With option 2 he would make $2100 to $2200
Step-by-step explanation:
We will calculate the minimum and maximum salary for every option. So, if sales are $5000, the salary with the first option will be:
$1250 + 6%(sales) = $1250 + 6%($5000)
= $1250 + $300
= $1550
If the sales are $10,000, then the salary will be:
$1250 + 6%(sales) = $1250 + 6%($10,000)
= $1250 + $600
= $1850
In the same, for the second option we get:
If the sales are $5000, then the salary will be:
$2000 + 2%(sales) = $2000 + 2%($5000)
= $2000 + $100
= $2100
If the sales are $10,000, then the salary will be:
$2000 + 2%(sales) = $2000 + 2%($10,000)
= $2000 + $200
= $2200
So, no matter the sales, the second option $2000 plus 2% of sales will always result in a better salary.
Therefore, the answers are:
He should choose the option that pays $2000 plus 2% of sales
With option 1 he would make $1550 to $1850
With option 2 he would make $2100 to $2200