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?
B
The decision should be based on the company's market reputation and growth prospects.C
Both offer the same income.At Company A, 5% of $200,000 in sales is $10,000, so total income is $50,000 + $10,000 = $60,000. At Company B, 3% of $200,000 is $6,000, so total income is $55,000 + $6,000 = $61,000. Company B offers the higher total annual income, so the correct choice is Company B.
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