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Each sales associate at an electronics store has a choice of the two salary options shown below. v $115 per week plus 9.5% commission on the associate’s total sales v $450 per week with no commission The average of the total sales amount for each associate last year was $125,000. Based on this average, what is the difference between the two salary options each year? (52 weeks = 1 year)

Answer :

Sionainn
For the sake of clarity, I'm going to call $115 per week plus 9.5% commission "Scenario A", and $450 total "Scenario B".

Let's solve for the annual earning of Scenario B first, because it's easier. To do this, all we have to do is multiply the amount earned per week ($450) by the number of weeks (52):
[tex]450*52=23400[/tex]
Scenario B earns $23,400 per year.

Now, for Scenario A. There are two parts: the fixed amount ($115 per week) and the commission (9.5% of $125,000). Let's solve for the fixed part first, again because it's easier:
[tex]115*52=5980[/tex]
So they would make $5,980 not including commission.
Now we have to solve for the commission, which we do by finding 9.5% of $125,000:
[tex].095*125000=11875[/tex]
So they make $11,875 in commission. Add that to the fixed amount to get the total:
[tex]5980+11875=17855[/tex]
With Scenario A, they make $17,855 (based on the average given.)

Now, since Scenario A is smaller, we need to subtract the Scenario A total from Scenario B to find the difference:
[tex]23400-17855=5545[/tex]
The difference between the two plans is $5,545.

Hope I helped, and let me know if you have any questions :)

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