Question

Tom uses the linear model of y = 35,000 + 0.45x to anticipate his salary from completing x
amount of dollars' worth of jobs. What is Tom's base salary? What percent commission does he
earn? Would you be able to use the same equation for Tom the next year? Why or why not?
Solution
x= the amount of dollarsworth of jobs. So if x = 0, then y = $35,000 + 0.45(0) = $35,000. So
that's Tom's base salary (the smallest amount he earns, even if no jobs are performed).
Toms base salary= $35,000

Tom's commission is his percentage of $ from each job. If x = the amount of dollars worth of
jobs, then Tom gets 0.45 of that, or 45% commission.
Percent Commission = 45%

Use of formula for the next year

We could use the same formula for Tom's salary next year unless his base salary is raised or his
commission changes. Any price increase charged to customers for work next year would be
reflected in greater values of x, but the formula would stay the same unless either the base salary
or commission change.