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meriva
3 years ago
13

chris can be paid in one of two ways. plan a is a salary of $370 per month, plus a commission of 8% of sales. plan b is a salary

of $730 per month, plus a commission of 3% sales. For what amount of sales is chris better off selecting plan a?
Mathematics
1 answer:
JulijaS [17]3 years ago
5 0

Answer:

For a sale value greater than $7200 the plan a is profitable.

Step-by-step explanation:

Let us assume for a sale of $x, Chris will choose plan a.

Now, in plan a, a commission of 8% of sales and $370 per month, is the salary.

So, for a sale of $x the salary is $(370 + 0.08x) per month.

And, in plan b, a commission of 3% of sales and $730 per month, is the salary.

So, for a sale of $x the salary is $(730 + 0.03x) per month.

Now, for selecting plan a, the condition is  

(370 + 0.08x) > (730 + 0.03x)

⇒ 0.05x > 360

⇒ x > 7200

Therefore, for a sale value greater than $7200 the plan a is profitable. (Answer)

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