Algebra I Portfolio Project

(Multistep word problem)

Scott the realtor is offered a job directly out of real-estate school. He

has a choice as to which way he will receive his salary the first year.

Salary Plan 1: He would 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 Scott averages $45000 in sales per month, how much would

he earn under the first plan? How much under the second
plan? Which is the better choice in this case?
b. Write a verbal model for Salary Plan 1 that relates base pay,
total pay, sales in a month, and percent commission.
c. Write a verbal model for Salary Plan 2 that relates sales in a
month, and percent commission.
d. Write an equation to determine when it would be better to
switch from the first plan to the second. Give a one- of two-
sentence answer that includes Ron’s sales in a month. Round
to the nearest dollar, if necessary.
e. Scott makes a goal to earn $8000 every month. State which
choice he should select and explain your reasoning. Use the
verbal model from (b) and (c) to set up an equation and
determine what his sales should be to achieve this goal.

Critical Thinking. Suppose Scott’s salary goal for the year is $50000.
If the average price of a house sold by his company is $60000, how
many houses would Scott have to sell over the course of the year to
meet his goal under each plan?