Question

For what amount Chris can be paid in one of two ways. Plan A is a salary of​$430Per​ month, plus a commission of8​%of sales. Plan B is a salary of​$607per​month, plus a commission of5​%of sales. For what amount of sales is Chris better off selecting plan​ A?

Answer 1

First make equations for both.

PLAN A
 y = 0.08x + 430

PLAN B
 y = 0.05x + 607

We need to solve for x to see at which point both plans are the same. We know that when x = 0, that Plan B is better. This means from 0 to x, plan B is better.

0.05x + 607 = 0.08x + 403
0.03x = 204
x = 6800

So this means that when the pay is more than $6800 then Plan A is better