Question

When hired at a new job selling jewelry, you are given two pay: _______.A: Base salary of $14,000 a year, with a commission of 12% of your sales B: Base salary of $21,000 a year, with a commission of 5% of your salesIn order for option A to produce a larger income, you would need sell at least $_____ of jewelry?

Answer 1

Answer:

$100,001

Explanation:

we can determine the amount of total sales needed to earn a higher salary by solving the following equation:

let C = total sales

$14,000 + 0.12C > $21,000 + 0.05C

0.12C - 0.05C > $21,000 - $14,000

0.07C > $7,000

C > $7,000 / 0.07

C > $100,000

so total sales must be at least $100,001 in order for option A to result in a higher salary

Answer 2

Answer:

$105,000

Explanation:

In order for option A to produce a larger income, you would need sell at least $ 105,000 of jewelry?

At $105,000 option A becomes preferred because

12% x 105,000 = $12,600 in addition to base salary = $26,600

BUT

5% x 105,000 = $5250, in addition to base salary of 21,000 = $26,250