Question

John is considering accepting one of two sales positions. ABC Company offers a yearly salary of $45,000. XYZ Company offers a yearly salary of $38,000 plus a 2% annual commission on sales. For what amount of sales s is the salary at XYZ Company greater than the salary at ABC Company

Answer 1

Answer: Amount of sales s = $6240 is the salary at ABC company is greater than at XYZ company.

Explanation:

Since we have given that

Annual salary of ABC company = $45000

Annual salary of XYZ company = $38000

Rate of commission = 2%

Amount of salary after commission at XYZ company would be

`(100+2)/(100)* 38000\\\\=(102)/(100)* 38000\\\\=1.02* 38000\\\\=38760`

So, Difference between is given by

`45000-38760\\\\=\$6240`

Hence, Amount of sales s = $6240 is the salary at ABC company is greater than at XYZ company.