Question

representative is paid the greater
of $950 or 8% of sales. at what volume of sales
will he start to earn more from the commission
based compensation

Answer 1

Building and solving an inequality, it is found that at a volume of sales of $11,875 he will start to earn more from the commission  based compensation.

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• We want to find how much in dollars he has to sell such that 8% of this amount is greater than $950.
• Supposing he sells $x, 8% of this is represented by 0.08x. We want it to be greater than $950, thus, the inequality is:

$0.08x > 950$

Now we solve the inequality, similarly to how we would solve an equality.

$x > \frac{950}{0.08}$

$x > 11875$

At a volume of sales of $11,875 he will start to earn more from the commission  based compensation.

A similar problem is given at https://brainly.com/question/17248342