Company A offers a monthly salary of $2400 plus a commission of 6% of the sales. Company B offers a monthly salary of $2900 plus a commission of 4% of the sales. How much must a person sell for Company A to be more money?

Question

Quizplus · Accepted Answer

Let's assume the amount of sales to be x.

For Company A, the total income depends on the monthly salary and commission combined:

Total income for Company A = Monthly salary + Commission 
Total income for Company A = $2400 + 6% of x 
Total income for Company A = $2400 + 0.06x

For Company B, the total income depends on the monthly salary and commission combined:

Total income for Company B = Monthly salary + Commission 
Total income for Company B = $2900 + 4% of x 
Total income for Company B = $2900 + 0.04x

To find out when Company A pays more than Company B, we need to set up an inequality:

$2400 + 0.06x > $2900 + 0.04x

Simplifying this inequality gives:

0.02x > $500

Dividing both sides of the inequality by 0.02 gives:

x > $25,000

Therefore, a person must sell more than $25,000 for Company A to be more money than Company B.

Company a Offers a Monthly Salary of $2400 Plus a Commission