# The Chocolate Industry

### Lindt vs Ferrero Rocher

## Which Company is Better?

## Variables

Dependent variable: Total pay ($)

## Which pay is better?

## 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

- 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

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

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.