Question

Kristin is promoting an upcoming play. She has two options for how she will be paid. Option A is an hourly wage of $7.00. Option B is a 5% commission on all money made during the play. She plans to work 2 days for 8 hours each day. How much money will the play need to bring in for both payment options to be equivalent?

Answer 1

Option A- $7 an hour for 16 hours, (7x16=112) So, she would make $112 if she chose option A.

Option B- 5% of the money made during the play. So, the total amount that the play would need to make would be (the total amount x 0.5 = $112) So, you would divide 112 by 0.5 to get $224.

Answer: The play would need to make $224 in order to give Kristin 5% commission that is equivalent to $7 an hour.

Answer 2

Answer:

$2240.

Step-by-step explanation:

Option A.

The option A implies a fixed amount of earning, if she is planning to work 2 days, 8 hours per day, then she will work 16 hours, if they pay $7 per hour. She will earn:

$\ 7(16hr)= 112$

Option B.

The second option is to just earn by commission, a 5% on all money made.

So, the equivalent point would be model by the following expression:

$0.05x=112$

Where $x$ is the total amount of many, now we solve for $x$:

$x=\frac{112}{0.05}=\ 2240$

This means that if during the play they make $2240, Kristin would gain the same no matter what option she takes.

However, if they make less than $2240, then the option A is the best decision.