Problema Solution
Chris can be paid in one of two ways. Plan A is a salary of $470 per month, plus a commission of 7% of sales. Plan B is a salary of $576 per month, plus a commission of 5% of sales. For what amount of sales is Chris better off selecting plan A?
Answer provided by our tutors
let 's' represent the total sales and 'M' the monthly salary
Plan A monthly salary:
M = 470 + 0.07s
Plan B monthly salary:
M = 576 + 0.05s
we want to solve for Plan A > Plan B:
470 + 0.07s > 576 + 0.05s
s > 5300
for sales greater than $5,300 per month, Chris is better off selecting plan A