Problem

Income Plans. Karen can be paid in one of two ways for selling insurance policies:Plan A:...

Income Plans. Karen can be paid in one of two ways for selling insurance policies:

Plan A: A salary of $750 per month, plus a commission of 10% of sales;

Plan B: A salary of $1000 per month, plus a commission of 8% of sales in excess of $2000.

For what amount of monthly sales is plan A better than plan B if we can assume that Karen’s sales are always more than $2000?

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