Manfred Is Considering Job Offers of the Same Type of Sales

Short Answer

Manfred is considering job offers of the same type of sales position from two retailers with similar product lines. Supreme Audio & Video is offering a base salary of $2,000 per month plus a 4% commission rate on sales. Buy-Right Electronics will pay him a base salary of $1,500 per month plus commission rates of 3% on the first $25,000 of sales and 6% on additional sales in a month. Based on past experience in sales positions, Manfred is confident he can attain average monthly sales of $55,000. At this level of sales, what would be his average gross earnings per month from each retailer?