Profitability Analysis of Options

The video tutorial explains two pay options for a jewelry sales job: Option A offers a $15,000 base salary with a 10% sales commission, while Option B offers an $18,000 base salary with a 5% commission. The tutorial guides viewers through deriving expressions for each option's income and solving an inequality to determine the sales amount needed for Option A to yield a higher income. The solution shows that selling over $60,000 in jewelry makes Option A more profitable.

What is the base salary offered in Option A?

• $10,000

• $18,000

• $20,000

• $15,000

How much commission is offered on sales in Option B?

• 15%

• 5%

• 7%

• 10%

What is the expression for the annual income in Option A?

• $18,000 + 0.1x

• $15,000 + 0.05x

• $18,000 + 0.05x

• $15,000 + 0.1x

Which expression represents the annual income for Option B?

• $18,000 + 0.1x

• $15,000 + 0.1x

• $18,000 + 0.05x

• $15,000 + 0.05x

What is the inequality set up to determine when Option A is more profitable?

• $18,000 + 0.1x > $15,000 + 0.05x

• $18,000 + 0.05x > $15,000 + 0.1x

• $15,000 + 0.05x > $18,000 + 0.1x

• $15,000 + 0.1x > $18,000 + 0.05x

What is the first step in solving the inequality?

• Subtract 0.05x from both sides

• Subtract $18,000 from both sides

• Add $15,000 to both sides

• Add 0.05x to both sides

After simplifying, what is the expression for x?

• x > 60,000

• x < 60,000

• x < 3,000

• x > 3,000

What is the final step in solving for x?

• Multiply both sides by 0.05

• Divide both sides by 0.05

• Add 0.05 to both sides

• Subtract 0.05 from both sides

What is the minimum sales amount needed for Option A to be more profitable?

• $70,000

• $80,000

• $50,000

• $60,000

What conclusion can be drawn about the sales amount for Option A?

• Sales must be exactly $60,000

• Sales must be more than $50,000

• Sales must be more than $60,000

• Sales must be less than $60,000