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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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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?

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.

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

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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

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

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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%

Answer is 'A'

gmatclubot

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

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