Marcus can choose between a monthly salary of $1,250 plus 4.5% of sales or $2,600 plus 2% of sales. He expects sales between $5,000 and $10,000 a month. Complete the explanation to show which salary option he should choose based on how much he could make.

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WaywardDelaney WaywardDelaney · Answer 1 · 2019-12-19T11:57:54+01:00

Answer:

From the given data it is clear that the Marcus should choose second option

Step-by-step explanation:

Given as :

The first salary offer = $1,250 + 4.5% of sales

The second salary offer = $2,600 + 2% of sales

According to question

The expected sales between $5,000 to $10,00

Now, Let consider expected sales to be $5000

∴ The first salary offer = $1,250 + 4.5% × $5000

Or, The first salary offer = $1,250 + [tex]\frac{4.5}{100}[/tex] × $5000

Or, The first salary offer = $1,250 + $225

Or, The first salary offer = $1475

Similarly

The second salary offer = $2,600 + 2% of sales

∴, The second salary offer = $2,600 + 2% × $5000

Or, The second salary offer = $2,600 + [tex]\frac{2}{100}[/tex] × $5000

Or, The second salary offer = $2,600 + $100

Or, The second salary offer = $2700

Now, Let consider expected sales to be $10,000

∴ The first salary offer = $1,250 + 4.5% × $10000

Or, The first salary offer = $1,250 + [tex]\frac{4.5}{100}[/tex] × $10000

Or, The first salary offer = $1,250 + $450

Or, The first salary offer = $1700

Similarly

The second salary offer = $2,600 + 2% of sales

∴, The second salary offer = $2,600 + 2% × $10000

Or, The second salary offer = $2,600 + [tex]\frac{2}{100}[/tex] × $10000

Or, The second salary offer = $2,600 + $200

Or, The second salary offer = $2800

Hence From the given data it is clear that the Marcus should choose second option Answer