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A yearly salary of $28 560 or a salary/commission package of $24 000 yearly salary plus 5% commission. If Mandy's expected sales for the year amount to $46 350, which option produces the higher yearly income?

 Sep 4, 2014

Best Answer 

 #1
avatar+33653 
+5

5% commission on $46,350 is:

 

$${\frac{{\mathtt{5}}}{{\mathtt{100}}}}{\mathtt{\,\times\,}}{\mathtt{46\,350}} = {\frac{{\mathtt{4\,635}}}{{\mathtt{2}}}} = {\mathtt{2\,317.5}}$$

 

Add this to $24000

 

$${\mathtt{24\,000}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,317.5}} = {\mathtt{26\,317.5}}$$

 

$26,317.5 is less than $28,560, so the salary without commission option is better here.

 Sep 4, 2014
 #1
avatar+33653 
+5
Best Answer

5% commission on $46,350 is:

 

$${\frac{{\mathtt{5}}}{{\mathtt{100}}}}{\mathtt{\,\times\,}}{\mathtt{46\,350}} = {\frac{{\mathtt{4\,635}}}{{\mathtt{2}}}} = {\mathtt{2\,317.5}}$$

 

Add this to $24000

 

$${\mathtt{24\,000}}{\mathtt{\,\small\textbf+\,}}{\mathtt{2\,317.5}} = {\mathtt{26\,317.5}}$$

 

$26,317.5 is less than $28,560, so the salary without commission option is better here.

Alan Sep 4, 2014

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