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1 answer:
Company A Income = 35,000 + 0.03x Company B Income = 25,000 + 0.05x set them equal to see how much of sales Julia needs to make the same income at both companies. 30,000 + 0.03x = 25,000 + 0.05x 30,000 - 25,000 = 0.05x - 0.03x 5,000 = 0.02x 5,000/0.02 = x 250,000 = x Company A has better base salary and so would pay better if less than 250,000 sales are made. Company B has bigger percent bonus and would be a better deal if more than 250,000 sales are made. So it's the 2nd choice.
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