Sales commissions. A second employee of the computer store in Problem 57 is paid a base salary of $3,000 a month plus a 5% commission on all sales during the month.
(A) How much must this employee sell in one month to earn a total of $4,000 for the month?
(B) Determine the sales level at which both employees Receive the same monthly income.
(C) If employees can select either of these payment methods, how would you advise an employee to make this selection?
Reference:
Sales commissions. One employee of a computer store is paid a base salary of $2,000 a month plus an 8% commission on all sales over $7,000 during the month. How much must the employee sell in one month to earn a total of $4,000 for the month?
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