Question

The weekly sales commission at Company X is 2 percent of the first $2,000 of weekly sales plus 15 percent of the weekly sales in excess of the first $2,000. The weekly sales commission at Company Y is 5 percent of the first $2,000 of weekly sales plus 10 percent of the weekly sales in excess of the first $2,000. In a given week, what is the amount of weekly sales at Company Y that would earn the same weekly sales commission as $5,000 in weekly sales at Company X?A. $5,900B. $5,300C. $4,900D. $4,800E. $4,500

Answer 1

A) $5900

Explanation:

For company X, we have 2% on the first $2000 sales

= (2/100) * 2000

= $40 commission

The remainder = $5000 - $2000

= $3000

For the remainder $3000, we have a commission of 15%

= (15/100)*3000

= $450

The total sales of company X = 450 + 40

= $490

For Y, we have 5% in the first $2000 sale

= (5/100) * 2000

= $100 commission

After the remaining $3000, the commission = 490 - 100

= $390(which is 10% above $2000 sales)

If $390 is 10%, then 100% = $3900

Total sales will be $2000 + $3900

= $5900(A)