Asalesperson applying for work is considering two job offers. company a offers to pay $110 per day plus 7% of the total sales for that day. company b offers $80 per day plus 12% of total daily sales. what is the smallest daily sales amount that will make company b as lucrative for the salesperson as company?

$600

Explanation:

Total entrance company A= 110 + daily sales amount x 7%

Total entrance Company B = 80 + daily sales amount x 12%

The point with the same entrance for both companies could be obtained matching  both equations:

110+daily sales amount x 7% = 80 + daily sales amount x 12% ,

clearing the variable (daily sales amount) :

daily sales amount= (110-80) / ( 12%-7% ) = 30 /5%  = $600

answer; encouraging the development of innovations by firms attempting to break a monopoly; (creative destruction)

the answer is a. $209,000