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

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Math Expert
Joined: 02 Sep 2009
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As a salesperson, John can choose one of two methods of annual payment  [#permalink]

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22 Jan 2018, 23:25
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75% (02:55) correct 25% (04:56) wrong based on 11 sessions

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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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23 Jan 2018, 00:47
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   [#permalink] 23 Jan 2018, 00:47
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