A sales representative is paid the greater of $1,275 per week or 9% of sales. At what volume of sales will she start to earn more from the commission-based compensation?
A) $14,166.67
B) $1,389.75
C) $2,295
D) $2,422.50
E) $12,750

Question

Quizplus · Accepted Answer

To find the volume of sales at which the sales representative starts to earn more from commission than the fixed $1,275, set up the equation 0.09 * sales = $1,275. Solving for sales gives sales = $1,275 / 0.09 = $14,166.67.

A Sales Representative Is Paid the Greater of $1,275 Per