Question

Mike can be paid in one of two ways based on the amount of merchandise he sells: Plan A: A salary of $1,000.00 per month, plus a commission of 10% of sales, OR Plan B: A salary of $1,300.00 per month, plus a commission of 15% of sales in excess of $9,000.00. For what amount of monthly sales is plan B better than plan A if we can assume that Mike's sales are always more than $9,000.00? Write your answer an an inequality involving x, where x represents the total monthly sales.

Answer 1

X > 21000

Explanation:

Given the following :

Payment plans :

PLAN A:

salary = $1000 per month

Commision = 10% of sales

PLAN B:

salary = $1300 per month

Commision = 15% of sales in excess of $9,000

Hence, for plan B; 15% is paid after deducting $9000 from total sales

For what amount of monthly sales is plan B better than plan A if we can assume that Mike's sales are always more than $9,000.00?

That is ;

Plan B > plan A

Let total sales = x

Plan A:

$1,000 + 0.1x

Plan B:

$1,300 + 0.15(x - 9000)

1300 + 0.15(x - 9000) > 1000 + 0.1x

1300 + 0.15x - 1350 > 1000 + 0.1x

0.15x - 50 > 1000 + 0.1x

0.15x - 0.1x > 1000 + 50

0.05x > 1050

x > 1050/0.05

x > 21000