marcel has been offered two sales roles. the first role, at company a, offers a base salary of $50,000 and a…

marcel has been offered two sales roles. the first role, at company a, offers a base salary of $50,000 and a commission of 5% on all sales. assuming marcel can make sales worth $200,000 in a year, what would be their total income from company a? the second role, at company b, offers a higher base salary of $55,000 but a lower commission of 3% on all sales. based on the same sales assumption, which role would offer marcel a higher total annual income? the decision should be based on the companys market reputation and growth prospects. company a company b both offer the same income.

marcel has been offered two sales roles. the first role, at company a, offers a base salary of $50,000 and a commission of 5% on all sales. assuming marcel can make sales worth $200,000 in a year, what would be their total income from company a? the second role, at company b, offers a higher base salary of $55,000 but a lower commission of 3% on all sales. based on the same sales assumption, which role would offer marcel a higher total annual income? the decision should be based on the companys market reputation and growth prospects. company a company b both offer the same income.

Answer

Explanation:

Step1: Calculate total income from Company A

Total income = Base salary+Commission. Commission = 5% of sales. Sales = $200,000. Commission = 0.05×200000 = $10,000. Base - salary = $50,000. Total income from Company A = 50000 + 10000=$60,000.

Step2: Calculate total income from Company B

Base - salary = $55,000. Commission = 3% of sales. Sales = $200,000. Commission = 0.03×200000 = $6,000. Total income from Company B = 55000 + 6000=$61,000.

Answer:

Company B