Question

Michael earns $900 per month, plus 5% commission on all his sales over $750. what is the minimum amount of sales Michael must have to earn at least $2500 in a month?

Answer 1

The minimum amount of sales Michael must have to earn at least $2500 in a month is $ 32000

Solution:

The expression to Michael earnings is:

$b + (c \times s)$

Where,

b is the base salary, which is $ 900 in this sum

c is the commission rate

Given that commission rate is 5%

s is the sales

Michael must have to earn at least $2500 in a month

Here, at least means, "greater than or equal to" 2500

The inequality is framed as:

base salary + 5 % on sales $\geq$ 2500

$900 + \frac{5}{100} \times s \geq 2500\\\\\ 900 + 0.05s\geq 2500$

Solve the inequality

$0.05s\geq 2500-900\\\\0.05s \geq 1600\\\\Divide\ both\ sides\ by\ 0.05\\\\s\geq 32000$

Thus, minimum amount of sales Michael must have to earn at least $2500 in a month is $ 32000