Curt can be paid in one of two ways for the furniture he sells.

Question

Curt can be paid in one of two ways for the furniture he sells. Plan A: Salary of $1050 per month, plus a commission of 10% of sales. Plan B: Salary of $1350 per month, plus a commission of 15% of sales in excess of $9000. For what amount of monthly sales is plan B better than plan A, assuming Curt's sales are always more than $9000?

Answer 1

Let s = sales

 

Plan A salary:  1050 + 0.1s

Plan B salary:  1350 + 0.15(s-9000)

 

1350 + 0.15(s-9000) > 1050 + 0.1s

1350 + 0.15s - 1350  > 1050 + 0.1s

0.15s > 1050 + 0.1s

0.05s > 1050

s > 21000

 

Plan B is better for sales in excess of $21,000