In order to find out where option A, lower base salary than option B but a higher sales commission, has a larger income, we first find out where they are equal.
Income of Option A = $13,000 + 11% of sales where
Income of Option B = $19,000 + 5% of sales
Setting them equal gives us
$13,000 + 11% of sales = $19,000 + 5% of sales and solving for sales gives us
11% of sales - 5% of sales = $19,000 - $13,000 = 6% of sales = $6,000
solving for Sales = $6,000/.06
Anything above this amount of sales will mean a higher value for Option A.
Hint: Total income for both options at break-even point is $24,000