Answer:
Method 2, a monthly base salary of $1,500 with a 3% commission on sales over $7,500, will earn more money.
Step-by-step explanation:
given -
method 1 - he can choose to earn only a 10% commission on sales each month,
method 2-earn a monthly base salary of $1,500 with a 3% commission on sales over $7,500.
also, he has an average sales of $16,000 each month.
according to the question;
method 1 earning =>
10% of $16,000 =>(10/100)*$16,000=$16,00.
method 2 earning =>
$1,500+(3/100)*($16000-$7500)=$1755.
in method 2, a monthly base salary of $1,500 with a 3% commission on sales over $7,500. he will earn more.
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