Question

Chris can be paid in two ways.Plan a is a salary of $480 per month, plus a commission of 8% of sales. Plan b is a salary of $755 per month, plus a commission of 3% of sales.For what amount of sales is Chris better off selecting

Answer 1

We will have the following:

*First: We write both equations given:

Plan A:

$p=0.08x+480$

Plan B:

$p=0.03x+755$

*Second: We determine the number of sales for which Chris is better off selecting plan B, that is:

$0.08x+480=0.03x+755\Rightarrow0.08x-0.03x=755-480$$\Rightarrow0.05x=275\Rightarrow x=5500$

So, for a number of sales smaller or equal to 5500 Chris is better off selecting plan B for his payment.