Jane Is Deciding Between Two Sales Positions

question 78

Essay

Jane is deciding between two sales positions. She can work for Marcy s and receive per hour or for Gigi s, where she earns per hour but also receives a commission per week. The two lines in the following figure represent the money Jane will make for working at each of the jobs. From the sketch of the graphed lines, how many hours would Jane have to work to earn the same amount at each of the positions? __________ hours If Jane expects to work less than hours a week, which job should she choose - Gigi s or Marcy s? __________ If Jane expects to work more than hours a week, which job should she choose - Gigi s or Marcy s? __________

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Definitions:

Percent of Sales Method

A forecasting technique used in financial planning to estimate certain balance sheet and income statement accounts based on projected sales growth.

Bad Debts

Amounts owed to a company that are not expected to be received, often due to customers being unable to pay.

Income Statement

A financial document that reports a company's revenues, expenses, and net income over a specific period.

Percentage of Sales Method

A financial forecasting model that assumes certain expenses and incomes will vary directly with sales.