When Sean joined a sales company he was offered a choice of two different salary contracts - Leaving Cert Mathematics - Question 1 - 2018
Question 1
When Sean joined a sales company he was offered a choice of two different salary contracts. The details of the contracts are outlined in the table below.
Contract A... show full transcript
Worked Solution & Example Answer:When Sean joined a sales company he was offered a choice of two different salary contracts - Leaving Cert Mathematics - Question 1 - 2018
Step 1
Find how much Sean would earn under each contract in a year where his total sales were €400,000.
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Answer
For Contract A, the total earnings can be calculated as follows:
Salary from Contract A: €35,000
Commission from sales:
extCommission=0.02imes400,000=€8,000
Total Income from Contract A:
=35,000+8,000=€43,000
For Contract B, the total earnings are calculated similarly:
Salary from Contract B: €30,000
Commission from sales:
extCommission=0.03imes400,000=€12,000
Total Income from Contract B:
=30,000+12,000=€42,000
Step 2
Find her total sales for that year.
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Answer
To find Mary's total sales, we need to calculate as follows:
Given that Mary earned €50,000 in total from Contract A, the relationship can be expressed as:
extTotalEarnings=extSalary+extCommission
Salary from Contract A: €35,000; hence,
50,000=35,000+0.02x
where x is the total sales.
Rearranging gives:
50,000−35,000=0.02x15,000=0.02x
Solving for x:
x = rac{15,000}{0.02} = 750,000
Therefore, Mary's total sales for that year were €750,000.
Step 3
Find the total sales for which a salesperson would earn the same amount of money under each contract.
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Answer
To find the total sales (x) where both contracts yield the same income:
For Contract A:
extTotalIncome=35,000+0.02x
For Contract B:
extTotalIncome=30,000+0.03x
Set the two equations equal to each other:
35,000+0.02x=30,000+0.03x
Rearranging gives:
5,000=0.01x
Solving for x:
x = rac{5,000}{0.01} = 500,000
So, a salesperson would earn the same amount under each contract when their total sales are €500,000.
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