Anticipated Salary

Question

Tom uses the linear model of y = 35,000 + 0.45x to anticipate his salary from completing x amount of dollars' worth of jobs.

What is Tom's base salary? What percent commission does he earn? Would you be able to use the same equation for Tom the next year? Why or why not?

Answer 1

Hello, thank you for taking the time to post your question!

In that formulation y = 35000 + 0.45x, the base salary is $35,000 because that is what he earns if x = 0. The percent commission then is the 0.45 or 45%, meaning that per sale he earns 45% of the sales.

Most likely then we will not be able to use the same equation for Tom next year because typically a contract like this would be negotiated on a yearly basis. So the base salary, the commission percentage, or both might change in the new year

I hope that helps you get moving in a better direction on this type of question! Feel free to reach out if you have any additional questions beyond that :)

Answer 2

from the given equation

y = 35000 + .45x          his salary is expressed as total salary (y) = 35,000 (base salary) = .45 x (commissions)

 

base salary = $35,000

commission = .45 0r 45%

He would be able to use the same equation only if his base salary and commission remained the same