Tobias just graduated with a degree in business and is looking to go into the sales field.
Question:
Tobias just graduated with a degree in business and is looking to go into the sales field. He is offered two positions in two different companies: Aquafina and Dasani. Tobias is happy to work for either company, but he wants to know which one would be better for him financially. The details of both offers are below:
Aquafina:
$67k base salary
4% sales commission
Dasani:
$83k base salary
14% performance bonus
Tobias is confident in his ability to achieve the performance bonus at Dasani, so he wonders how much he would have to sell (in dollar amount) at Aquafina to earn a similar amount.
Calculate the value of sales Tobias would have to sell at Aquafina to earn the same income he would earn working at Dasani (assuming he earned the performance bonus).
Managerial Accounting Decision Making and Performance Management
ISBN: 978-0273764489
4th edition
Authors: Ray Proctor