A sales person is given a choice of two salary plans

Question

Owen was offered $225 per week plus 3% commission or 15% of sales with no salary. How much must he sell before the second method of payment gives him the higher pay? Express your answer to the nearest dollar.

Answer 1

The two would be equal when

225 + 0.03p = 0.15p -> 225 = 0.12p -> p = 225/0.12 = 1875

So, as long as his sales exceed $1875 weekly, he makes more.