You are offered two different jobs.Company A offers an annual salary of $34,000 plus a year-end bonus of 3.5% of your total sales.Company B offers a salary of $28,000 plus a year-end bonus of 7.5% of your total sales.What is the amount you must sell in one year to earn the same salary working for either company?

Question

Quizplus · Accepted Answer

Let's assume that the amount you sell in one year is x.

For Company A, your annual salary would be $34,000 + 3.5% of x = $34,000 + 0.035x
For Company B, your annual salary would be $28,000 + 7.5% of x = $28,000 + 0.075x

Now let's set these two expressions equal to each other since we want to find the amount you must sell to earn the same salary:
$34,000 + 0.035x = $28,000 + 0.075x

Simplifying this equation, we get:
$6,000 = 0.04x
x = $150,000

Therefore, you must sell $150,000 in one year to earn the same salary working for either company. Therefore, the best choice is C.

You Are Offered Two Different Jobs