Question

Curt can be paid in one of two ways for the furniture he sells. Plan​ A: Salary of ​$350 per​ month, plus a commission of​ 10% of sales. Plan​ B: Salary of ​$750 per​ month, plus a commission of​ 15% of sales in excess of ​$5000. For what amount of monthly sales is plan B better than plan​ A, assuming​ Curt's sales are always more than ​$5000​?

Answer 1

Answer:

for $16000 plan B is better than A

Explanation:

We are searching for the stage where Plan A's compensation is less than Plan B's compensation.

Plan A < Plan B

 

let total of Curt's sales  be the x,

x is the basis of the commission under Plan A, but the first 5000 of sales are excluded i.e  (x - 5000) from the basis of commissions under Plan B.

 

350 + x(0.10) < 750 + (x - 5000)(0.15)

800 -750 < (0.15) x - 5000(0.15) - (0.10)x

50 < (0.15 - 0.10)x - 750

50+750 < (0.05)x

800 < (0.05)x $\frac{800}{(0.05)} < x$

16000 < x