Problema Solution
John is considering accepting of two sales positions. company a offers an annual salary of 45000. company b offers an annual salary of 38000 plus 2% annual commission on all sales he makes. For what amount of annual sales is the salaray at company b greater than the salary of company A?
Answer provided by our tutors
company A salary:
$45,000
2% as a decimal is "0.02", let 'x' represent the annual sales, then company B salary:
$38,000 + 0.02x
we want to solve for 'x' that makes the two salaries equal:
45000 = 38000+0.02x
solving for 'x' we have x=350000
John must have annual sales of $350,000 in order for the two salaries to be equivalent