Q:

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 sales or a salary of $400.00 per week plus an 8% commission of his weekly sales. Which solution generate each week in order for the option with commission to be the better choice?

Accepted Solution

A:
Answer:Above $4375, commission would give him more money.Step-by-step explanation:Shawn has two salary options.He can either receive a fixed salary of $750.00 per week sales or a salary of $400.00 per week plus an 8% commission of his weekly sales. Let the sales be represented by y. We get the following equation to check when both gets equal.[tex]750=400+0.08y[/tex]=> [tex]0.08y=750-400[/tex]=> [tex]0.08y=350[/tex]y = 4375y = $4375. At this much sales amount, either salary or commission would be the same.Above $4375, commission would give him more money.