Name: Jay B. Who is asking: Student Level: Middle
Question: Salary Plan 2: No base pay but a 6% commission on each sale. I can`t seem to figure out how to approach this problem. I thought about graphing it as a function, but can`t seem to figure out how. I`M LOST! PLEASE HELP! This is due February 23, 2001, I would appreciate your prompt response. Thank you very much. Jay Hi Jay,Graphing is not a bad idea. First I looked at some numbers. Suppose that he sold $100 000 worth of realestate in one month. How much would he make? Salary Plan 2: He would receive 6% of $100 000 or $6000 Suppose he sold $50 000 worth of realestate. How much would he make? Salary Plan 2: He would receive 6% of $50 000 or $3000 The question to ask is "How much realestate sold would result in salary plans 1 and 2 giving the same result?" If he sells $x then salary plan 1 results in $2000 plus 3% of $x and salary plan 2 results in 6% of $x. Thus find x if $2000 plus 3% of $x equals 6% of $x. Cheers,Penny Here is a second answer from Leeanne Hi Jay, You were on the right track with your idea about graphing, but you would need to graph 2 functions not just one. Set up a coordinate plane with your xaxis being monthly sales and the yaxis being monthly salary. Now if you graph each of the functions that represent each of the salary options available (hint: use a different colour for each line, say red abnd blue) you should be able to divide the graph into two sections: (1) the part where the red line is above the blue line  for these xvalues (monthly sales amounts) the salary option representing the red line is better. (2) the part where the blue line is above the red line  the salary option representing the blue line is better. At the point where the two lines cross, there is no difference between the two salary options. There is also a way to solve this problem with only algebra. Suppose we want to find out the monthly sales figure the employee has to reach in order for the 6% commission option to be the better option. If we let x be the unknown monthly sales figure, the we need to solve the following inequality for x: 6% of x is greater than 2000 plus 3% of x The answer to this inequality will tell you range or interval of monthly sales figures that will yield a higher salary under the option of taking only 6% commission. Hope this helps, Leeanne
