Curt can be paid in one of two ways for the furniture he sel

Curt can be paid in one of two ways for the furniture he sells. Plan A: Salary of $700 per month, plus a commission of 10% of sales. Plan B: Salary of $900 per month, plus a commission of 15% of sales in excess of $6000. For what amount of monthly sales is plan B better than plan A, assuming Curt’s sales are always more than $6000?

Plan B is better than Plan A when Curt’s sales are more than $___________________.

Solution

Let sales be $x

Plan A: Salary of $700 per month, plus a commission of 10% of sales

y = 700 + 0.1*x

Plan B : Salary of $900 per month, plus a commission of 15% of sales in excess of $6000

y = 900 + 0.15( x- 6000)

So, amount of monthly sales is plan B better than plan A

900 + 0.15( x- 6000) > 700 + 0.1*x

200 + 0.15x - 900 > 0.1x

-700 > -0.05x

x > $ 14000

Plan B is better than Plan A when Curt’s sales are more than $ 14000