CHOICE 1 $1250+5.5% of sales
$5000x0.055=$275+1250=$1525
$10,000x0.055=$550=1250=$1800
CHOICE 2 $2600=2% of sales
$5000x0.02=$100+2600=$2700
$10000x0.02=$200+2600=$2800
So even though more is earned through percentage of sales in CHOICE 1, it doesn't make up for the larger monthly salary of CHOICE 2