Mack and Gail are in the electronic and computer retail business and each of them for different businesses. At the business that Mack works at, his weekly earnings is $880 a week plus an 8% commission on sales. At the business that Gail works at, her weekly earnings is $960 a week plus a 6% commission on sales. Gail thinks that her salary structure is better than Mack’s salary structure. If e represents the weekly earnings (in dollars) and s represents the weekly sales (in dollars), then do the following A. For what weekly sales value (or values) are both salary structures equivalent? B. For what weekly sales values is Mack’s salary structure better than Gail’s salary structure?
Mack and Gail are in the electronic and computer retail business and each of them for different businesses. At the business that Mack works at, his weekly earnings is $880 a week plus an 8% commission on sales. At the business that Gail works at, her weekly earnings is $960 a week plus a 6% commission on sales. Gail thinks that her salary structure is better than Mack’s salary structure. If e represents the weekly earnings (in dollars) and s represents the weekly sales (in dollars), then do the following A. For what weekly sales value (or values) are both salary structures equivalent? B. For what weekly sales values is Mack’s salary structure better than Gail’s salary structure?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Mack and Gail are in the electronic and computer retail business and each of them for different businesses. At the business that Mack works at, his weekly earnings is $880 a week plus an 8% commission on sales. At the business that Gail works at, her weekly earnings is $960 a week plus a 6% commission on sales. Gail thinks that her salary structure is better than Mack’s salary structure. If e represents the weekly earnings (in dollars) and s represents the weekly sales (in dollars), then do the following
A. For what weekly sales value (or values) are both salary structures equivalent?B. For what weekly sales values is Mack’s salary structure better than Gail’s salary structure?
Expert Solution
Step 1
Given,
Mack weekly earnings = $880
Commission on sales = 8%
Gail weekly earnings = $960
Commission sales = 6%
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