You are offered two different sales jobs.

Question

The first company offers a straight commission of 6% of the sales. The second company offers a salary of $440 per week plus 1% of the sales. How much would you have to sell in a week in order for the straight commission offer to be at least as good?

Answer 1

Hi John, let x represent the amount of sales. Then the equation to find the point where both offers would match is:

 

.06x = 440 + .01x

 

Solve for x:

 

Subtract .01x from both sides:

 

.05x = 440

 

Divide both sides by .05:

 

x = 8800

 

If you sold $8800 worth of goods, at 6%, you would earn $528.00. At $440 plus 1%, you would earn $528.00

 

Anything less than $8800, at 6%, you would earn less than the $440 plus 1% offer.

 

Anything more than $8800, you would earn more at 6% than the $440 plus 1% offer.

 

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