Question: Ron the realtor is offered a job directly out of real-estate school. he has a selection as to which way he will receive his salary the first year. salary plan
1: he could receive a base pay of $2000 per month plus a 3% commission on each sale. salary plan
2: no base pay but a 6% commission on each sale.
a. if ron averages $45,000 in sales per month, how much could he earn under the first plan? how much under the second plan? which is the better selection in this case?