Question

Joe can choose between a monthly salary of $1,800 plus 6.5% of sales or $2,100 plus 4% of sales. He expects sales between $5,000 and $10,000 a month. Which salary option should he choose?

Answer 1

Answer:

Joe should choose $2100 + 4% of Sales

Step-by-step explanation:

       The options available to Joe are ($1800 + 6.5% of sales) and ($2100 + 4% of sales) for his salary. He chooses the option in which he would get higher salary. Sales are expected to lie between $5000 and $10000.

       Let the sales be denoted by $x$ (in Dollars). Joe chooses first option if it is a higher number than the second.

    ⇒ if $1800+\frac{6.5}{100}x>2100+\frac{4}{100}x$

        $\frac{2.5}{100}x>300\\x>12000$

       So, he chooses first option if $x(=Sales)>12000$. However sales is between $5000 and $10000. So, Joe will go with second option.

∴ Joe should choose $2100 + 4% of sales.