Given:
• Option A:
Base salary = $34,000
Commission on sales = 12% ==> 0.12
• Option B:
Base salary = $40,000
Commission on slaes = 5% ==> 0.05
Let's find how much you need to sell for option A to produce a larger income.
For option A, we have the equation:
y = 0.12x + 34000
For option B, we have the equation:
y = 0.05x + 40000
Where x represents the amount of sales made.
To find how much you need to sell for option A to produce a larger income, set the expression in A to be greater than that of B. Then solve for x.
0.12x + 34000 > 0.05x + 40000
0.12x - 0.05x > 40000 - 34000
0.07x > 6000
Divide both sides by 0.07:
[tex]\begin{gathered} \frac{0.07x}{0.07}>\frac{6000}{0.07} \\ \\ x>85714.3 \end{gathered}[/tex]
Therefore, you will need to make a minimum of $85715 sales to for option A to roduce a larger income.
ANSWER:
85715
