Curt can be paid in one of two ways for the furniture he sells. Plan A: Salary of
$500 per month, plus a commission of 10% of sales. Plan B: Salary of $900
per month, plus a commission of 15% of sales in excess of $6000. For what amount of monthly sales is plan B better than plan A, assuming Curt's sales are always more than $6000?
Let S be the the total sales per month
So...we have these equations
B = 900 + .15( S - 6000)
A = 500 + .10 ( S)
And we want to know when B > A ...so...
900 + .15(S - 6000) > 500 + .10(S) simplify
900 + .15S - 900 > 500 + .10S
.15S > 500 + .10S subtract .10S from both sides
.05S > 500 divide both sides by .05
S > 10000 ⇒ "B" is better whenever his monthly sales are greater than $10000