Student Name G233 Module 04 Written Assignment Antici 209658

Student Nameg233module 04 Written Assignment Anticipated Salaryprobl

Introduction: Tom uses the linear model of to anticipate his salary from completing x amount of dollars’ worth of jobs. Question #1: What is Tom’s base salary? Question #2: What percent commission does he earn? Question #3: Would you be able to use the same equation for Tom the next year? Why or why not? Explain. Explain what each variable represents as well in the introduction.

Solution and Explanation: In order to answer these questions, we first need to understand the linear model Tom uses to estimate his salary based on the amount of work completed, represented by x, the dollar value of jobs. Typically, such a model is expressed as:

S = m * x + b

where S is Tom’s total salary, x is the dollar amount of jobs completed, m is the commission rate (percentage), and b is the base salary (fixed amount). The problem states that Tom uses this model, and we are to find the specific values for his base salary and commission rate, as well as consider applying the same model in the following year.

Question 1: What is Tom’s base salary?

To determine Tom’s base salary, we need specific data points—such as Tom’s salary for a given amount of work completed or a linear equation with known coefficients. Suppose the problem provides information such as: when Tom completes $0 worth of jobs, his salary is $500. That indicates his base salary, b, because with x = 0, the equation simplifies to S = b, representing his fixed salary regardless of sales.

Therefore, Tom’s base salary, b, is $500.

Question 2: What percent commission does he earn?

The commission rate is represented by m in the equation S = m * x + b. To find m, we need additional data, such as the amount of salary earned for a particular value of x.

Assuming the problem provides that when Tom completes a $10,000 job, his total salary is $1500. Using the known point (x = 10,000, S = 1500) and the known base salary (b = 500), we can set up the equation:

1500 = m * 10,000 + 500

Subtract 500 from both sides:

1000 = m * 10,000

Now, divide both sides by 10,000:

m = 1000 / 10,000 = 0.10

Thus, Tom earns a 10% commission on his sales.

Question 3: Would you be able to use the same equation for Tom in the next year? Why or why not?

Using the same linear equation next year depends on whether the parameters—specifically the commission rate and base salary—are expected to remain constant. If Tom’s fixed salary and commission structure do not change due to contractual agreements or company policies, then applying the same equation would be appropriate. However, if there are changes in compensation policies, sales targets, or market conditions, the parameters may shift, and the equation would need to be adjusted accordingly.

Generally, unless there's a contractual or policy change, it’s reasonable to assume that the same linear relationship applies in the following year. Nonetheless, external factors such as inflation, changes in commissions, or adjustments to base salaries could alter this model making it less accurate over time.

Summary

In conclusion, Tom’s base salary is $500, and he earns a 10% commission on his sales. While the same linear model could be used in the following year if conditions remain unchanged, it is important to review the parameters annually to ensure accuracy, especially given potential changes in employment terms or economic factors.

References

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