A small business Assignment | College Homework Help

A small business is considering hiring a new sales representative (sales rep) to market its product in a nearby city. Two pay scales are under consideration.

Pay scale 1: Pay the sales rep a base yearly salary of $14,400 plus a commission of 8% of total yearly sales.

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Pay scale 2: Pay the sales rep a base yearly salary of $18,000 plus a commission of 5% of total yearly sales.

(a) For each of the pay scales above, use a formula to express the total yearly earnings for the sales rep as a function of total yearly sales s. (Give percents in decimal form.)

pay scale 1 T1(s) =
pay scale 2 T2(s) =

(b) What amount of total yearly sales would result in the same total yearly earnings for the sales rep no matter which of the two pay scales is used?
$

(c) On the same screen, plot the graphs of the functions you made in part (a). (Let T be total yearly earnings and s the total yearly sales. Select the correct graph.)

(d) If you were a sales rep negotiating for the new position, under what conditions would you prefer pay scale 1?

when you expect total sales to exceed $27,692when you expect total sales to be below $27,692    when you expect total sales to exceed $120,000when you expect total sales to be below $120,000

Under what conditions would you prefer pay scale 2?

when you expect total sales to exceed $27,692when you expect total sales to be below $27,692    when you expect total sales to exceed $120,000when you expect total sales to be below $120,000

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