Anderson University BUS 525 ASSIGNMENT Masuda

Questions
1) Karen has been offered two similar positions at competing financial firms. One position pays an
annual salary of $61,200. The other job guarantees a salary of $2,000 per month plus a
commission of 2% on all sales. The average monthly sales figure per employee is $120,000.
a. If Karen’s monthly sales reached $120,000, how much compensation would Karen receive
per month?
b. What level of monthly sales is necessary for Karen to consider either job?
Answer:
a. Karen has been offered two similar positions at competing for financial firms.
One position pays an annual salary of $61.200.
The other job guarantees a salary of $2.000 per month plus a commission of 2% on all sales.
The average monthly sales figure per employee is $120.000
b. Calculation of Level of monthly sale
Monthly salary in first position=$61200/12
=$5100
Monthly salary in 2nd position =$2000+(2/100) (Monthly sales)
Therefore
Monthly salary in 1st position=Monthly salary in 2nd position
$5100 = $2000+(2/100) (Monthly sales)
$5100-$2000 = (2/100) (Monthly sales)
$3100 = 0.02(Monthly sales)
Monthly sales = $3100/0.02
Monthly sales = $155,000
Thus, level of monthly sale to consider either job is$155,000