A sales staff is composed of a sales manager and two sales : GMAT Problem Solving (PS)
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# A sales staff is composed of a sales manager and two sales

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A sales staff is composed of a sales manager and two sales [#permalink]

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15 Jan 2006, 02:02
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Question Stats:

73% (02:36) correct 27% (01:37) wrong based on 243 sessions

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A sales staff is composed of a sales manager and two sales people, all of whom earn commission as a percentage of sales. Each sales person earns 5% commission on sales. In a given week, the sales staff earned a total of $1,750 in commissions on$5,000 worth of sales. What commission rate did the sales manager earn during that week?

(A) 25%
(B) 30%
(C) 35%
(D) 40%
(E) 45%
[Reveal] Spoiler: OA
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15 Jan 2006, 02:07
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A for me.

Let managers comminsion rate be M.

m*5000+ 2*0.05*5000=1750
5000*m=1250
m=25/100=25%
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15 Jan 2006, 02:12
Good job Andy,

OA is a straight (A)
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15 Jan 2006, 08:32
Guys, I don't understand the method of solving. Don't we have to assume that manager's base for commissions X1 and sales persons' base x2. And x1+x2=5000, than x1*m+x2*0.05=1750. After that the problem does not have the solution. Why you multiply 5000 by m and by 0.05 when different employees can have different base for the commisions?
Please, explain what I am missing.
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15 Jan 2006, 09:43
each persons commission is a percentage of total sales = 5000.

now the 2 sales guys have 5% each

5% of 5000 = 250

therfore for 2 sales guys toalt commision = 2*250 = 500.

the ramaining commision is the managers .. as

1750 = M + S1 + S2

now s1 +s2 = 500 Therfore M = 1250.

1250 = X/100 0f (5000) therefore x = 25.
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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27 Nov 2013, 00:22
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Guys , another way of doing

First find 1750 is what % of 5000.
we get 35 %, then 2 sales people have 10 % (both 5% ) , then the remaining is 35%-10% = 25%( sales manager)

Hope you guys understood
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16 Sep 2015, 00:07
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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16 Sep 2016, 06:33
GMATT73 wrote:
A sales staff is composed of a sales manager and two sales people, all of whom earn commission as a percentage of sales. Each sales person earns 5% commission on sales. In a given week, the sales staff earned a total of $1,750 in commissions on$5,000 worth of sales. What commission rate did the sales manager earn during that week?

(A) 25%
(B) 30%
(C) 35%
(D) 40%
(E) 45%

pretty straight forward question
5% each sales person - 10% total. so 0.1*5,000 = 500. Manager earned 1,250$in commission. 1250/5000 = 0.25 so 25% - A Intern Joined: 24 Sep 2016 Posts: 6 Schools: MBS '18, LBS MiM"18 WE: Analyst (Consulting) Followers: 0 Kudos [?]: 1 [0], given: 8 Re: A sales staff is composed of a sales manager and two sales [#permalink] ### Show Tags 01 Oct 2016, 22:24 A sales staff is composed of a sales manager and two sales people, all of whom earn commission as a percentage of sales. Each sales person earns 5% commission on sales. In a given week, the sales staff earned a total of$1,750 in commissions on $5,000 worth of sales. What commission rate did the sales manager earn during that week? (A) 25% (B) 30% (C) 35% (D) 40% (E) 45% ----------------------------------------------------------------------------------- It is given that each sales person earns 5% commission on sales and the number of sales person is 2 which means the total percentage of commission that goes to the sales person is 5 * 2 = 10% We also know that the total amount of commission that was earned by the whole sales staff (including manager, 3) is$1,750
Total Sales Amount = $5,000 Now, find$1750 is what percentage(%) of \$5000
Let the unknown percentage be 'x'
5000 * 'x'/100 = 1750
'x' = 35%

Now, we know the total percentage of commission earned by the sales staff (including manager) is 35% and we also know the total percentage of commission earned by the sales people is 10%
Therefore, in order to find the commission rate that the sales manager earned during that week -
= total percentage of commission - total percentage of commission earned by the sales people
= 35% - 10%
= 25%

Re: A sales staff is composed of a sales manager and two sales   [#permalink] 01 Oct 2016, 22:24
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