00:02
Hi there.
00:03
This is a practical example type of question where you are trying to decide which salary option you would like to take.
00:12
You have an option of just being paid 8 % of total sales, or you can get 1 ,500 plus a commission of 1%.
00:22
So you are trying to figure out the break -even point.
00:25
In other words, the sales amount where one option would be better than the other.
00:32
So in other words, you want to know the point where they would both pay the same amount, and then you can decide based upon that.
00:38
So to solve that, let's let x equal the total sales, what we're trying to find.
00:51
And we're trying to find the point where the two plans are equal.
00:57
So the one plan is 8 % of the total sales.
01:02
So writing 8 % as a decimal is 0 .08 .08.
01:10
Times the total sales.
01:12
So 0 .08x is the one option.
01:15
The other option is 1500 plus a commission of 1 % on the sales...