The straight commission offer must be at least as good as the straight commission offer, which requires sales of $12,000 in a week.
<h3>What is Straight Commission?</h3>
Straight Commission: Straight commission can also be referred to as commission-only because it is the only pay an employee receives. There is no base salary or hourly wage included in this pay structure. All compensation is based on an agreed-upon percentage of sales.
Get the complete straight commission offer as the first step.
The straight total commission can be expressed as follows:
A=R x T
A = straight total commission
R=commission rate
T=total sales
In our example,
A=0.06t=0.06 t is replaced by
R=6%=6/100=0.06
T=t in equation 1.
in the 2nd step, the second offer's total value
The total sum of the second offer can be expressed as follows:
A=F+(RT)
A=the amount of income the second company offers
F=weekly fixed wage
R = commission percentage
T = total sales
F in our instance equals $240 weekly.
in the 3rd step
R=4%=4/100=0.04
T=t is replacing A=240+(0.04t)=0.04 t+240 is in equation 2
now equate equations 1 and 2
0.06 t=0.04 t+240
(0.06 t-0.04 t)=240
0.02 t=240
t=240/0.02=12,000
The straight commission offer must be at least as good as the straight commission offer, which requires sales of $12,000 in a week.
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