Question

Imagine you are a car salesperson with a bonus contract that pays you $4,000 a month if you sell less than eight (8) cars and $5,000 a month if you sell eight (8) cars or more.

If you expect to sell six (6) cars in each of the next 2 months, you can increase your average monthly pay to $4,500 if you convince two customers to speed up their car purchase by one month.

True or False?

Answer 1

Correct answer: TRUE

As the amount of bonus for more than 8 cars is $5000 and less then 8 cars is $4000.
If I expect to sale 6 car in the next two month each the average increase in the monthly pay can be made 4500 if two customers are convinced to speed up their purchase.
This is because when 2 customers from the second month speed up their purchase and make their purchase on the first month then the total amount of sales would be 8 cars for the first month and 4 cars for the next month. Therefore the bonus for the first month would be 5000 as 8 cars is the minimum limit, and the second month would be 4000.

Finally, this would result to and increase in the average monthly payment to = (5000+4000)/2 = $4500.

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