A salesperson works 40 hours per week at a job where he has two options for being paid. Option A is an hourly wage of $24. Option B is a commission rate of 4% on weekly sales. How much does he need to sell this week to earn the same amount with the two options?
Option A payment function:
24h
With a 40 hour week, we have:
24 * 40 = 960
Option B payment function with sales amount (s):
0.04s
We want to know the amount of sales (s) where Option A at 40 hours = Option B. So we set both equal to each other:
0.04s = 960
To solve this equation for s, we type it in our math engine and we get:
s = 24,000
Option A payment function:
24h
With a 40 hour week, we have:
24 * 40 = 960
Option B payment function with sales amount (s):
0.04s
We want to know the amount of sales (s) where Option A at 40 hours = Option B. So we set both equal to each other:
0.04s = 960
To solve this equation for s, we type it in our math engine and we get:
s = 24,000