A medical representative receives a monthly salary of Php 12,000 plus 5% commission on every item sold. For what amount of monthly sales will he earn at least Php 20,000?
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A medical representative receives a monthly salary of Php 12,000 plus 5% commission on every item sold. For what amount of monthly sales will he earn at least Php 20,000?
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Answer:
Step-by-step explanation:
Let's assume that the medical representative sells x items in a month.
The commission earned on each item sold is 5% of its selling price. We do not know the selling price of each item, but we can use the total sales as a proxy for it.
So, the commission earned on x items sold is 0.05x times the total sales.
The total earnings of the medical representative in a month will be:
Total earnings = Basic salary + Commission earned
= Php 12,000 + 0.05x(total sales)
We want to find the value of x, such that the total earnings are at least Php 20,000. Therefore, we can set up an inequality as follows:
Php 12,000 + 0.05x(total sales) ≥ Php 20,000
Simplifying this inequality, we get:
0.05x(total sales) ≥ Php 8,000
Multiplying both sides by 100 to get rid of the decimal, we get:
5x(total sales) ≥ 800,000
Dividing both sides by 5, we get:
x(total sales) ≥ 160,000
So, the medical representative must have monthly sales of at least Php 160,000 to earn at least Php 20,000 in a month.
Answer:
the medical representative needs to make at least Php 160,000 in monthly sales to earn at least Php 20,000 in total.