When hired at a new job selling jewelry, you are given two pay options:

Question

Option A: Base salary of $16,000 a year, with a commission of 10% of your sales

Option B: Base salary of $20,000 a year, with a commission of 3% of your sales

In order for option A to produce a larger income, you would need sell at least $_____ of jewelry?

Answer 1

16,000 + .1 s = 20,000 + .03 s

.07 s = 4,000

s = 400,000/7