Question

9. Joanna is considering two job offers. Phoenix Fashions offers

Answer 1

Answer:

A] 1500 + 0.025x , 1250 + 0.055x ; B] Sales value = 8333

C] Offer 1, if prefers more fix salary over additional incentive. And, offer 2 if  prefers additional incentive over fix salary.

Step-by-step explanation:

Let the sales be = x

A] Offer 1 = 1500 + 2.5% comm on sales = 1500 + 2.5%x = 1500 + 0.025x

Offer 2 = 1250 + 5.5% comm on sales = 1250 + 5.5%x = 1250 + 0.055x

B] Value of sales, resulting in total salary : at equation 1 = equation 2

1500 + 0.025x = 1250 + 0.055x

1500 - 1250 = 0.055x - 0.025x → 250 = 0.03x

x = 250 / 0.03 →  x (Sales value) = 8333

C] Which job she should take, would depend on her preferences.

If she wants more fixed salary, & less above per unit achievement, she should take offer 1 as fixed salary 1500 > 1250. If she wants less fixed salary & more additional incentives, she should take offer 2, as commission 5.5% > 2.5%