Problema Solution

Chris can be paid in one of two ways. Plan A is a salary of $360 per month, plus a commission of 7% of sales. Plan B is a salary of $644 per month, plus a commission of 3% of sales. For what amount of sales is Chris better off selecting plan A?

Answer provided by our tutors

let x = the amount of sales


Plan A: 360 + 0.07x


Plan B: 644 + 0.03x


Plan A is better than Plan B means:


360 + 0.07x > 644 + 0.03x


by solving we find:


x > 7,100


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for more than $7,100 Chris is better off selecting plan A.