Luisa sells two brands of tablet PCs. She receives a commission of 12% on sales for Brand A and 8% on sales for Brand B. If she is able to sell one of each brand of tablet for a total of Php 42,000, she will receive a commission of Php 4,400.
a. What is the cost of each brand of tablet PC?
b. How much commission did she receive from the sale of each brand of tablet?
c. Suppose you are Luisa and you want to maximize your earnings.
Which brand of tablet PC will you sell to maximize your earnings.
Which brand of tablet PC will you encourage your clients to buy?
Why?

1

Answers

2015-05-10T21:00:48+08:00

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We let the price or cost of Brand A be x and Brand B be y

x+y=42,000... [1]

And 
\frac{12x}{100} + \frac{8y}{100} =4,400 \\  \frac{3x+2y}{25} =4,400 \\ 3x+2y=110,000... [2]

[2]-2[1]
3x+2y=100,000
2x+2y=84,000

3x+2y-2x-2y=110,000-84,000 \\ x=26,000

26,000+y=42,000 \\ y=16,000

a) The cost of brand A is P26,000 and brand B is P16,000
b) Brand A - P26,000*0.12= P3,120
Brand B- P16,000*0.8= P1,280
c) I will sell brand A to maximize my savings since it has higher commission. And of course you would let your clients buy brand A since it has higher commission for you.

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