gourmet food works
Posted July 10, 2009
By admin
Maths problem, could use anyones help pls!?
6. Nina is a representative for a gourmet food company selling food to delicatessens all over the city. She works for a commission of 19% on all sales but also has the option to be paid a retainer. If she opted for the retainer of $250, her commission rate would drop to 13%. What value of sales does she need to make in a week in order to be better off on a straight commission basis?
let the breakeven sales be $ S
then 250 + 13% of S = 19% of S
or 250 +0.13S = 0.19S
or 0.16S = 250
so S = 250/0.16 = $1562.50
in order to be better off on a straight commission basis,
she thus needs a sale of at least $ 1563
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