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12 April, 09:37

chris can be paid in one of two ways. plan a is a salary of $370 per month, plus a commission of 8% of sales. plan b is a salary of $730 per month, plus a commission of 3% sales. For what amount of sales is chris better off selecting plan a?

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  1. 12 April, 10:22
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    For a sale value greater than $7200 the plan a is profitable.

    Step-by-step explanation:

    Let us assume for a sale of $x, Chris will choose plan a.

    Now, in plan a, a commission of 8% of sales and $370 per month, is the salary.

    So, for a sale of $x the salary is $ (370 + 0.08x) per month.

    And, in plan b, a commission of 3% of sales and $730 per month, is the salary.

    So, for a sale of $x the salary is $ (730 + 0.03x) per month.

    Now, for selecting plan a, the condition is

    (370 + 0.08x) > (730 + 0.03x)

    ⇒ 0.05x > 360

    ⇒ x > 7200

    Therefore, for a sale value greater than $7200 the plan a is profitable. (Answer)
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