What should a sales associate's goal be if they need to net $90,000 for the year, considering their expenses are 25% of total earnings?

To determine the appropriate earnings goal for a sales associate aiming to net $90,000 while accounting for expenses that constitute 25% of total earnings, it is essential to understand how expenses impact net income.

If the sales associate nets $90,000, this amount represents 75% of their total earnings because the remaining 25% goes toward expenses. To calculate total earnings, you can set up the equation as follows:

Let "X" be the total earnings. Since 25% of X will be expenses, 75% of X will be the net income after those expenses have been deducted. This can be represented mathematically as:

0.75X = $90,000

To find X, divide both sides of the equation by 0.75:

X = $90,000 / 0.75

X = $120,000

Thus, to net $90,000 after accounting for 25% in expenses, the sales associate's goal should be to earn $120,000 in total. This aligns with the given answer, making it the correct choice.

By accurately calculating net income and understanding the relationship between total earnings and expenses, a sales associate can set realistic financial goals that reflect their true desired income