Building and solving an inequality, it is found that at a volume of sales of $11,875 he will start to earn more from the commission based compensation.
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We want to find how much in dollars he has to sell such that 8% of this amount is greater than $950.
Supposing he sells $x, 8% of this is represented by 0.08x. We want it to be greater than $950, thus, the inequality is:
Now we solve the inequality, similarly to how we would solve an equality.
At a volume of sales of $11,875 he will start to earn more from the commission based compensation.