A small business is considering hiring a new sales representative to market its product in a nearby city. Two pay scales are under consideration.
Pay Scale 1: Pay the sales rep a base yearly salary of $10,000 plus a commission of 8% of total yearly sales.
Pay Scale 2: Pay the sales rep a base yearly salary of $13,000 plus a commission of 6% of the yearly sales.

a. For each Pay scales, use a formula to express the total yearly earnings for the sales rep as a function of total yearly sales. Identify the meaning of your variables.

Question

A small business is considering hiring a new sales representative to market its product in a nearby city. Two pay scales are under consideration. 
Pay Scale 1: Pay the sales rep a base yearly salary of $10,000 plus a commission of 8% of total yearly sales. 
Pay Scale 2: Pay the sales rep a base yearly salary of $13,000 plus a commission of 6% of the yearly sales. 

a. For each Pay scales, use a formula to express the total yearly earnings for the sales rep as a function of total yearly sales. Identify the meaning of your variables.

gina_b · Answer

b. Plot the graphs for each function on the same coordinate plane. Explain the meaning of the point of intersection. 

c. If you were a sales rep negotiating for the new position, under what conditions would you prefer pay scale 1? Under what conditions would you prefer pay scale 2?