Question

A. You have an open sales position in your company that pays a salary of $21,000 per year. You discover that another company with a similar sales position offers a combination plan of $12,000 per year plus a commission of 15 percent of sales. Average sales are $90,000. Which job has the potential for higher earnings? Do you need to adjust your salary? Why or why not?

Answer 1

12000 + .15*(90,000)