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As a salesperson, John can choose one of two methods of annual payment

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As a salesperson, John can choose one of two methods of annual payment  [#permalink]

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New post 22 Jan 2018, 22:25
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As a salesperson, John can choose one of two methods of annual payment: either an annual salary of $25,000 plus a 15 percent commission on total sales only if they exceed $100,000 or an annual salary of $10,000 plus a 25 percent commission on him total annual sales. What could his total annual sales be to generate the same annual pay with either method?

A. $175,000
B. $160,000
C. $125,000
D. $120,000
E. $60,000

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As a salesperson, John can choose one of two methods of annual payment  [#permalink]

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New post 22 Jan 2018, 23:47
Bunuel wrote:
As a salesperson, John can choose one of two methods of annual payment: either an annual salary of $25,000 plus a 15 percent commission on total sales only if they exceed $100,000 or an annual salary of $10,000 plus a 25 percent commission on him total annual sales. What could his total annual sales be to generate the same annual pay with either method?

A. $175,000
B. $160,000
C. $125,000
D. $120,000
E. $60,000


Let his total sales be x (Greater than > 100,000). As per the question -

\(25,000 + \frac{15}{100}(x-100,000) = 10,000 + \frac{25}{100}(x)\).... Now when we solve for \(x\) we get \(x = 0\) which means his total sales is less than 100,000 and the only Option is E.
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As a salesperson, John can choose one of two methods of annual payment &nbs [#permalink] 22 Jan 2018, 23:47
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