You are a soon-to-graduate senior interested in a sales career. You have

offers from two companies and are considering the pros and cons of their

compensation plans. Both offer a standard set of benefits including

vacation and paid time off, medical and life insurance, etc.

Company A has a $30,000 starting salary and permits new sales people to

earn commissions of up to 25% and bonuses that could add $5,000 in the

first year.

Company B offers a $40,000 starting salary with no commissions in the

first year but bonuses that could be up to $10,000.

Considering the first year earnings only, what are the pros and cons of

each offer? Which company would you choose if all other factors are

equal? Why did you choose this company?