# The Chocolate Industry

### Lindt vs Ferrero Rocher

By: Bakee, Ahrabhi

## Which Company is Better?

My friend, Rachel wants to start working at either Lindt Chocolate, or Ferrero Rocher, because she loves chocolate and wants to get involved with the chocolate industry. Ferrero Rocher offers a Fixed salary of \$200 with 15% commission of sales to their new coming employees. However, Lindt offers \$250 as a fixed salary with 10% commission of sales.

## Variables

Independent variable: Sales (\$)

Dependent variable: Total pay (\$)

## Which pay is better?

To figure out which pay is better we must put data of both Ferrero Rocher and Lindt into slope & y intercept (y=mx+b) form or standard form (Ax+By+C=0)

## Ferrero Rocher

What we know about the pay at Ferrero Rocher:

• Fixed salary of \$200

• 15% commission

Knowing this we can make an equation saying:

Total pay = \$0.15 (sales) + \$200

At \$200 the coordinates on a graph will be (0,200) which means \$200 is the y Intercept

With the equation, Total pay = \$0.15 (sales) + \$200 we can see that the slope is 0.15

To prove this:

Slope = (y2 - y1)/( x2 - x1)

The coordinates that can be used are (0,200) and (300, 245)

= (245 - 200)/(300 - 0 )

= 45/300

= 0.15

Therefore the slope is 0.15

## Lindt

What we know about the pay at Lindt:

• Fixed salary of \$250

• 10% commission

Knowing this we can make an equation saying:

Total pay = \$0.10 (sales) + \$250

At \$250 the coordinates on a graph will be (0,250) which means \$250 is the y Intercept

With the equation, Total pay = \$0.10 (sales) + \$250 we can see that the slope is 0.10

To prove this:

Slope = (y2 - y1)/( x2 - x1)

The coordinates that can be used are (0,250) and (300, 280)

= (280 - 250)/(300 - 0 )

= 30/300

= 0.10

Therefore the slope is 0.10

## Point of Intersection

To figure out the point of intersection the following equations has to be considered:

Ferrero Rocher: Total pay = \$0.15 (sales) + \$200

Lindt: Total pay = \$0.10 (sales) + \$250

This means:

\$0.15 (sales) + \$200 = \$0.10 (sales) + \$250

To find the x coordinate, we now have isolate sales

\$0.15 (sales) + \$200 = \$0.10 (sales) + \$250

\$0.15 (sales) - \$0.10 (sales) = \$250 - \$200

0.05 (sales) = 50

sales = 50/0.05

sales = \$1000

This means the x coordinate is 1000

To check if we were right we can substitute 1000 for the value of sales

\$0.15 (sales) + \$200 = \$0.10 (sales) + \$250

\$0.15 (1000) + \$200 = \$0.10 (1000) + \$250

\$150 + \$200 = \$100 + \$250

\$350 = \$350

To find the y coordinate (total pay) we have to substitute the x vale (1000) into one of the equations:

Total pay = \$0.15 (sales) + \$200

Total pay = \$0.15 (1000) + \$200

Total pay = \$150 + \$200

Total pay = \$350

This means the y coordinate is 350

Therefore the point of intersection for Ferrero Rocher and Lindt is (1000, 350)

## Conclusion

Both chocolate companies will pay their employees \$350 when there is \$1000 worth in sales.

If Rachel sells an average amount of less than \$1000 then she should work at Lindt because they offer more money. If Rachel sells more than \$1000 she should work at Ferrero Rocher because they offer a higher amount of money.

Doing this helps us decided the right decision to make when dealing with money. With an offer like this at first you would think the work that offers more for a salary is better than the one that sells less. Graphing out the two possibilities help one decide what is better.