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# How to solve this? algebra

When hired at a new job selling jewelry, you are given two pay options:

Option A: Base salary of \$13,000 a year, with a commission of 11% of your sales

Option B: Base salary of \$19,000 a year, with a commission of 5% of your sales

In order for option A to produce a larger income, you would need sell at least \$ of jewelry each year.

### 1 Answer by Expert Tutors

Walter B. | Success-Based Tutor Specializing in Your StudentSuccess-Based Tutor Specializing in Your...
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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