Question

An account executive receives a base salary plus a commission. On $40,000 in monthly sales, the account executive receives $3200. On $60,000 in monthly sales, the account executive receives $3800.A.) Determine a linear function that will yield the compensation of the sales executive for a given amount of monthly sales.

B.) Use this model to determine the account executive's compensation for $85,000 in monthly sales.

Answer 1

(A)x=2000+0.03y

(B)$4550

Explanation:

Let his base salary =a

Let his Monthly Pay=x

Volume of Monthly Sales =y

Rate of Commission=b

Since His Monthly Pay, x is dependent on a constant salary and directly proportional to his sales volume

x=a+ by

On $40,000 in monthly sales, the account executive receives $3200

3200 = a+40000b

On $60,000 in monthly sales, the account executive receives $3800.

3800=a+60000b

Solving these two simultaneously

3800=a+60000b

3200 = a+40000b

Subtracting

600=20000b

b= 600/20000 =0.03

From (1)

3200 = a+40000b

3200 = a+(40000 X 0.03)

3200 = a+ 1200

a= 3200-1200=2000

(A) The linear function that will yield the compensation(x) of the sales executive for a given amount of monthly sales (y) is given as:

x=2000+0.03y

(B) For $85000 in Monthly sales, his compensation will be:

x=2000+0.03y

= 2000+(0.03X85000)

=2000+2550

=$4550