Question

Marcus can choose between a monthly salary of $1.500 plus 5.5% of sales or $2,400 plus 3% of sales. He expects sales between $5,000 and $10,000 a month. Which salary option he choose?

Answer 1

Using the mean sales value $2400 basic + 3% commision is the better deal

Explanation:

As the sales figures are not fixed to a single value lets use the mean (average) value:

In statistics the notation use for this is as follows:

Dropping the $ sign for now

Let the sales value be `x`
Then the mean sales value is: `barx`

`=> barx=(5000+10000)/2 = 7500`

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`color(blue)("Option 1 - $1500 basic + 5.5% commission")`

`1500+5.5/100xx7500 = 1912.50`

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`color(blue)("Option 2 - $2400 basic + 3% commission")`

`2400+3/100xx7500 = 2625.00`

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Using the mean sales value Option 2 is the better deal