alex earns $600 per month plus4% of all his sales over $1000. Find the minimum sales that will allow allow to earn at least $3000 per month

Question

alex earns $600 per month plus 4% of all his sales over $1000.  Find the minimum sales that will allow alex to earn at least $3000 per month.

Answer 1

Alex wants to earn $3,000 per month. Part of his income is fixed at $600, leaving a difference of $2,400 to be earned through commissions.

 

The commission rate is 4% of sales over $1,000.

 

We can then formulate an equation describe this situation.

 

Then, $2,400 = 0.04 x Sales, which yields $60,000 to which we have to add the $1,000 base.

 

So, Alex must sell $61,000 per month to earn $3,000.

 

Proof: $61,000 - 1,000 = 60,000 x 0.04 = $2,400