Concept explainers
A salesperson makes a base salary of $ 15,000 a year phus an 8% commission on sales for the year. The total salary can be expressed as a linear equation ( See Example7.)
Y = 15,000 + 0.08x
- What is the salesperson’s salary for a year in which his sales total $ 500,000?
- What is the salary for a year in which sales total $ 300,000?
- What does the −intercept mean in the context of this problem?
- Why it unreasonable to use negative values for x in this equation?
Example 7
Interpreting the x- and y-intercepts of line.
Companies and corporation are permitted to depreciate assets the have a known useful life span. This accounting practice is called straight-line depreciation. In this procedure the useful life span of the asset is determined, and then the asset is depreciated by an equal amount each year until the taxable value of the assets is equal to zero.
The J.M Gus trucking company purchases a new trunk for $65,000. The trunk will be depreciated at $13,000 per year. The equation that describes the depreciation line is
Y = 65,000 − 13,000x
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