Algebra Question- Chris can be paid in one of two ways.

Question

Chris can be paid in one of two ways. Plan A is a salary of $350 per month, plus a commission of 9% of gross sales. Plan B is a salary of $690 per month, plus a commission of 4% of gross sales. For what amount of gross sales should Chris select plan A?

Answer 1

I would first determine at what gross sales amount the two options are equal.

$350.00 + .09(x) = $690.00 + .04(x)

Subtracting .04(x) from both sides results in:

$350.00 + .05(x) = $690.00

Now subtract $350.00 from both sides which results in:

.05(x) = $340.00

Now divide both sides by .05 which results in

x=6,800 which is the amount of gross sales at which both plans are equal.

 

Therefore, Chris should select plan A when sales equal $6,801.00