Answer:
You will have to sell $7,667 worth of sales in a week in order for the straight commission offer to be at least as good
Step-by-step explanation:
Step 1: Get the total straight commission offer
We can express the straight total commission as follows;
A=R×T
where;
A=straight total commission
R=commission rate
T=total sales
In our case;
R=5%=5/100=0.05
T=t
replacing
A=0.05×t=0.05 t....equation 1
Step 2: Total amount of the second offer
We can express the total amount of the second offer as follows;
A=F+(R×T)
where;
A=amount of income the second company offers
F=fixed salary per week
R=commission rate
T=total sales
In our case;
F=$230 per week
R=2%=2/100=0.02
T=t
replacing;
A=230+(0.02×t)=0.02 t+230....equation 2
Step 3: Equate equation 1 and 2
0.05 t=0.02 t+230
(0.05 t-0.02 t)=230
0.03 t=230
t=230/0.03
t=7,666.67 rounded up=7,667
You will have to sell $7,667 worth of sales in a week in order for the straight commission offer to be at least as good
