Respuesta :
Answer:
$105,000
Explanation:
In order for option A to produce a larger income, you would need sell at least $ 105,000 of jewelry?
At $105,000 option A becomes preferred because
12% x 105,000 = $12,600 in addition to base salary = $26,600
BUT
5% x 105,000 = $5250, in addition to base salary of 21,000 = $26,250
Answer:
$100,001
Explanation:
we can determine the amount of total sales needed to earn a higher salary by solving the following equation:
let C = total sales
$14,000 + 0.12C > $21,000 + 0.05C
0.12C - 0.05C > $21,000 - $14,000
0.07C > $7,000
C > $7,000 / 0.07
C > $100,000
so total sales must be at least $100,001 in order for option A to result in a higher salary