Question

A sales person in a stereo store is given a choice of two different compensation plans. One plan offers a weekly salary of $250 plus a commission of $25 for each stereo sold. The other plan offers no salary but pays $50 commission on each stereo sold. How many stereos must the sales person sell to make the same amount of money under both plans ?

Answer 1

Answer:

The salesperson needs to sell 10 stereos to make the same money on both plans

Step-by-step explanation:

We'll analyze both choices for the compensation plans of a salesperson.

One plan offers a fixed weekly salary of $250 plus a $25 commission for each stereo sold. The function than models this plan is:

P1=250+25x

Where x is the number of stereos sold.

The other plan offers no fixed salary but a $50 commission on each stereo sold. The function of this plan is:

P2=50x

To find the equilibrium point for both plans, we make P1=P2:

250+25x=50x

Simplifying:

25x=250

Solving:

x = 250 / 25 = 10

The salesperson needs to sell 10 stereos to make the same money on both plans