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A certain salesman's yearly income is determined by a base [#permalink]
24 Jan 2012, 23:22

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00:00

A

B

C

D

E

Difficulty:

95% (hard)

Question Stats:

22% (02:26) correct
78% (01:42) wrong based on 465 sessions

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Did the salesman's base salary account for more than half of the salesman's yearly income last year?

(1) If the amount of the commission had been 30 percent higher, the salesman's income would have been 10 percent higher last year.

(2) The difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year.

Re: DS - Percentage [#permalink]
25 Jan 2012, 02:10

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devinawilliam83 wrote:

Why is the answer to this A and not D?

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Did the salesman's base salary account for more than half of the salesman's yearly income last year?

Given: {Income}={salary}+{commission}. Question basically asks: is {salary}>{commission}?

(1) If the amount of the commission had been 30 percent higher, the salesman's income would have been 10 percent higher last year --> 1.1({salary}+{commission})={salary}+1.3{commission} --> {salary}=2{commission} --> {salary}>{commission}. Sufficient.

(2) The difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year --> |{salary}-{commission}|=0.5{salary}, notice that {salary}-{commission} is in absolute value sign ||, meaning that we can have two cases:

A. {salary}-{commission}=0.5{salary} --> 0.5{salary}={commission} --> {salary}>{commission}, thus the answer would be YES; Or: A. {commission}-{salary}=0.5{salary} --> 1.5{salary}={commission} --> {salary}<{commission}, thus the answer would be No. Not sufficient.

Re: A certain salesman's yearly income is determined by a base [#permalink]
21 Jun 2012, 03:04

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Expert's post

jaswinder46 wrote:

please explain why salary - commission is in absoulute value sign?

Because if {salary}>{commission} then {salary}-{commission}=0.5{salary}, since 0.5{salary}>0.

But if {salary}<{commission} then {commission}-{salary}=0.5{salary}.

So, the second statement, which says that "the difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year" should be expressed as |{salary}-{commission}|=0.5{salary}. _________________

Re: DS - Percentage [#permalink]
14 Jun 2013, 03:14

Bunuel wrote:

devinawilliam83 wrote:

Why is the answer to this A and not D?

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Did the salesman's base salary account for more than half of the salesman's yearly income last year?

Given: {Income}={salary}+{commission}. Question basically asks: is {salary}>{commission}?

(1) If the amount of the commission had been 30 percent higher, the salesman's income would have been 10 percent higher last year --> 1.1({salary}+{commission})={salary}+1.3{commission} --> {salary}=2{commission} --> {salary}>{commission}. Sufficient.

(2) The difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year --> |{salary}-{commission}|=0.5{salary}, notice that {salary}-{commission} is in absolute value sign ||, meaning that we can have two cases:

A. {salary}-{commission}=0.5{salary} --> 0.5{salary}={commission} --> {salary}>{commission}, thus the answer would be YES; Or: A. {commission}-{salary}=0.5{salary} --> 1.5{salary}={commission} --> {salary}<{commission}, thus the answer would be No. Not sufficient.

Answer: A.

Hope it's clear.

Hi Bunnel, If i do assume that C>S, this will contradict information given in A.

Re: DS - Percentage [#permalink]
14 Jun 2013, 03:16

Expert's post

cumulonimbus wrote:

Bunuel wrote:

devinawilliam83 wrote:

Why is the answer to this A and not D?

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Did the salesman's base salary account for more than half of the salesman's yearly income last year?

Given: {Income}={salary}+{commission}. Question basically asks: is {salary}>{commission}?

(1) If the amount of the commission had been 30 percent higher, the salesman's income would have been 10 percent higher last year --> 1.1({salary}+{commission})={salary}+1.3{commission} --> {salary}=2{commission} --> {salary}>{commission}. Sufficient.

(2) The difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year --> |{salary}-{commission}|=0.5{salary}, notice that {salary}-{commission} is in absolute value sign ||, meaning that we can have two cases:

A. {salary}-{commission}=0.5{salary} --> 0.5{salary}={commission} --> {salary}>{commission}, thus the answer would be YES; Or: A. {commission}-{salary}=0.5{salary} --> 1.5{salary}={commission} --> {salary}<{commission}, thus the answer would be No. Not sufficient.

Answer: A.

Hope it's clear.

Hi Bunnel, If i do assume that C>S, this will contradict information given in A.

Is this an Official question?

What do you mean by official question? Check the tags. It's MGMAT. _________________

A certain salesman's yearly income is determined by a base s [#permalink]
17 Aug 2013, 02:16

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Was the salesman's commission larger than his base salary last year?

(1) If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year.

(2) The absolute difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year. _________________

Re: A certain salesman's yearly income is determined by a base s [#permalink]
17 Aug 2013, 02:19

Expert's post

Stiv wrote:

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Was the salesman's commission larger than his base salary last year?

(1) If the amount of the commission had been 30 percent higher, the salesman's total income (salary plus commission) would have been 10 percent higher last year.

(2) The absolute difference between the amount of the salesman's base salary and the amount of the commission was equal to 50 percent of the salesman's base salary last year.

Re: DS - Percentage [#permalink]
17 Aug 2013, 10:01

Bunuel wrote:

devinawilliam83 wrote:

Why is the answer to this A and not D?

A certain salesman's yearly income is determined by a base salary plus a commission on the sales he makes during the year. Did the salesman's base salary account for more than half of the salesman's yearly income last year?

Given: {Income}={salary}+{commission}. Question basically asks: is {salary}>{commission}?

(1) If the amount of the commission had been 30 percent higher, the salesman's income would have been 10 percent higher last year --> 1.1({salary}+{commission})={salary}+1.3{commission} --> {salary}=2{commission} --> {salary}>{commission}. Sufficient.

I don't know how answer choice A can be sufficient. See example below.

Using your statement: 1.1({salary}+{commission})={salary}+1.3{commission}

1.1 s + 1.1 c = s + 1.3 c ; for sake of simplicity, let's say that salary = 100 and commission = 100

1.1 (100) + 1.1 (100) = 100 + 1.3 (100)

110 + 110 = 100 + 130

220 < 230 ; Insufficient

^^ I'm confused, do we have to take a salary that's greater than commission to solve the question "Is salary > commission?"

Another way I thought of it was...

If instead of plugging in values, is you decide isolate salary (s) and commission (c) using your formula in bold, it would be:

.10 s = .02 c

In this case, for all positive values where salary > commission, it holds true. Sufficient.

Can someone please help explain how Bunuel got salary = 2 commission? What am I doing wrong above? Am I missing something?

~ Im2bz2p345

Last edited by Im2bz2p345 on 17 Aug 2013, 10:16, edited 2 times in total.

Re: A certain salesman's yearly income is determined by a base [#permalink]
19 Aug 2014, 01:25

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