Problem

A second employee of the computer store in Problem 65 is paid a base salary of $1,175 a mo...

A second employee of the computer store in Problem 65 is paid a base salary of $1,175 a month plus a 5% commission on all sales during the month.

(A) How much must this employee sell in 1 month to earn a total of $3,170 for the month?


(B) Determine the sales level where both employees receive the same monthly income. If employees can select either of these payment methods, how would you advise an employee to make this selection?

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