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25 July, 18:15

An account executive receives a base salary plus a commission. On $40,000 in monthly sales, the account executive receives $3200. On $60,000 in monthly sales, the account executive receives $3800. A.) Determine a linear function that will yield the compensation of the sales executive for a given amount of monthly sales.

B.) Use this model to determine the account executive's compensation for $85,000 in monthly sales.

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  1. 25 July, 18:21
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    (A) x=2000+0.03y

    (B) $4550

    Step-by-step explanation:

    Let his base salary = a

    Let his Monthly Pay=x

    Volume of Monthly Sales = y

    Rate of Commission=b

    Since His Monthly Pay, x is dependent on a constant salary and directly proportional to his sales volume

    x=a + by

    On $40,000 in monthly sales, the account executive receives $3200

    3200 = a+40000b

    On $60,000 in monthly sales, the account executive receives $3800.

    3800=a+60000b

    Solving these two simultaneously

    3800=a+60000b

    3200 = a+40000b

    Subtracting

    600=20000b

    b = 600/20000 = 0.03

    From (1)

    3200 = a+40000b

    3200 = a + (40000 X 0.03)

    3200 = a + 1200

    a = 3200-1200=2000

    (A) The linear function that will yield the compensation (x) of the sales executive for a given amount of monthly sales (y) is given as:

    x=2000+0.03y

    (B) For $85000 in Monthly sales, his compensation will be:

    x=2000+0.03y

    = 2000 + (0.03X85000)

    =2000+2550

    =$4550
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