I am having difficulty with the following problem:
Mark was formerly paid a salary of $400 per week and 8% commission on his total sales.Later Mark was given a 20% salary cut and his commission rate was increased to 10%. What is the smallest amount of sales Mark has to make to earn as much under the new plan as he did with the old. (Ans=4000)
Here is how i am attempting it.
Marks new salary is $320 and his commission rate is 10%.
So He needs 80 dollars more to be back to his original salary so he needs a sale of $800
Now further compensation requires that the previous sales income must match the onward sales income . I don't know how to do that. I guess that's why I am not getting the right answer. Any suggestions that could help me out.