Question

A sales person is given a choice of two salary plans. Plan 1 is weekly salary of $600 plus 2 percent commission of sales. Plan 2 is a straight commission of 10% of sales. How much in sales must he make in a week for both plans to result in the same salary?

Answer 1

He must make $7,500 in sale

Step-by-step explanation:

Let's say:

s = amount make in sales per week

P1 = weekly salary of Plan 1

P2 = weekly salary of Plan 2

P1 and P2 can be expressed using the fixed amount plus the commission.

P1 = 600 + 0.02s

P2 = 0 + 0.1s

P2 = 0.1s

If both plans result in the same salary:

P1 = P2

600 + 0.02s = 0.1s

0.1s - 0.02s = 600

0.08s = 600

s = 600/0.08

s = $7,500