Pay Plans

You just got a job with Gina's Tape Shop. You have a choice of two different pay plans.

Plan A Earnings: $120 per week plus 10% of sales
Plan B Earnings: $90 per week plus 15% of sales

You can expect your average sales per week to be $400.

How much would you earn with each payment plan?

Which plan would be better?

Now, suppose you start to work in November and continue to work through the middle of January. You anticipate that sales during November (5 weeks) will be $350 per week. Sales during December are expected to be $800 per week, and $300 per week in January. Extend your spreadsheet to compute your weekly earnings.

What's the best pay plan this time?

Solution


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