No-Toxic-Toys currently has $400,000 of equity and is planning an $160,000 expansion to meet increasing demand for its product.
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Answer:
<em>She will be paid $1,350</em>
Step-by-step explanation:
<u>Linear Modeling</u>
Some events can be modeled as linear functions. If we are in a situation where a linear model is suitable, then we need two sample points to make the model and predict unknown behaviors.
The linear function can be expressed in the slope-intercept format:
y=mx+b, where m and b are constants.
The payments for a salesperson will be linearly modeled. There are two known points: When the sales were $16,000, the payment was $1,600. This makes the point (16,000;1,600).
We also know when the sales were $12,000, the payment was $1,400. The point is (12,000;1,400)
Let's use the points to find the values of m and b.
Using (16,000;1,600):
1,600=m*16,000+b
Using (12,000;1,400):
1,400=m*12,000+b
Subtracting both equations:
200=16,000m-12,000m
200=4,000m
Solving:
m=200/4,000=0.05
Using the first equation and the value of m:
1,600=0.05*16,000+b
1,600=800+b
Solving:
b=800
The equation is now complete:
y=0.05x+800
She sold $11,000 this month, so the payment is:
Y=550+800=1,350
She will be paid $1,350