Question

Shawn has been hired as a sales associate Horizon Mobile Phone Company. He has two salary options. He can either receive a fixed salary of $750.00 per week or a salary of $400.00 per week plus an 8% commission of his weekly sales. Which solution set among the options below represents the dollar amount of sales that he must generate each week in order for the option with commission to be the better choice?

Answer 1

5,000 dollars. He must generate about 5,000 dollars per week for the commission to be the better choice. Don't quote me however. But I believe this is the answer. 

Cause he gets a base salary of 400.00 plus the 0.08 commision (8%)
He would need at least 5,000 in sales to get 8 percent which would be 400, making his salary 
400+400 = 800, better than the other option of 750

Answer 2

In order for the option with commission to be the better choice, Shawn has to make sales Using this solution set 8% of the earnings should be more than $(750-400) = $300 Therefore, we must get the total amount of sales to be made in order to get more than $300 commission. That would be 100% If 8% = $300 100% =? (300*100)/8= $3750 Therefore Shawn should make at least $3750 of sales for the commission choice to be a better choice