You are offered two different sales jobs. the first company offers a straight commission of 6% of the sales. the second company offers a salary of $ 310 per week plus 2% of the sales. how much would you have to sell in a week in order for the straight commission job to be at least as good as the salary based job?

Weekly Sales = 7750$

Explanation:

Let we Assume:

x = Weekly Sales

y = Weekly Earning

Afterwards using the given information:

First company offers only 6% commission on weekly sales which can be written as:

y = 0.06x               -   Equation 1

Second company offers 310$ per week plus 2% commission on weekly sales which may be written as:

y = 310 + 0.02x     -   Equation 2

By comparing equation 1 and equation 2 we have:

0.06x = 310 + 0.02x ; Comparing equation 1 & 2 as both equals to y

0.06x - 0.02x = 310

0.04x = 310 ;

x = 310 / 0.04

x = 7750 $

So, we have to achieve weekly sales of 7750$ for the straight commission job to be at least as good as the salary based job.

first part

Return on equity = net income / equity =

net income = total revenue - expenses = $66,500 - $42,700 (salaries) - $6,900 (utilities) - $8,000 (supplies) - $1,675 (depreciation) - $2,700 (taxes) = $4,525

equity = $153,200 (Dec. 31 balance) + $42,000 (new stocks issued) - $20,000 (treasury stocks) - $3,620 (dividends) + 17,600 (treasury stocks sold) + $4,525 (net income) = $193,705

ROE = $4,525 / $193,705 = 2.34%

The company is less profitable than other companies in the same industry.

second part

total stocks outstanding = 18,100

third part

EPS for January = $4,525 / 18,100 = $0.25

EPS for January is higher than last year's average