Find all School-related info fast with the new School-Specific MBA Forum

It is currently 11 Jul 2014, 22:05

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A salesperson earns 5% on all sales between $200 and

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 30 Aug 2003
Posts: 325
Location: dallas , tx
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
A salesperson earns 5% on all sales between $200 and [#permalink] New post 12 Feb 2004, 13:10
00:00
A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
A salesperson earns 5% on all sales between $200 and $600,and 8 % on all sales over $600. What is her commission in a week in which her sales total $800.?
20
46
88
36
78
simple yet bit confusing.. :?
_________________

shubhangi


Last edited by shubhangi on 12 Feb 2004, 13:39, edited 1 time in total.
GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4318
Followers: 17

Kudos [?]: 146 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 13:27
D)
400 * .05 + 200(portion over 600$) * .08 = 20 + 16 = 36
_________________

Best Regards,

Paul

SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 3

Kudos [?]: 29 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 13:53
of $800 he earns 8% for the last $200 = 16
Bellow $600 he earns 5% = 30
Answer should be 46
GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4318
Followers: 17

Kudos [?]: 146 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 13:55
Anandk, it's 5% on all sales between $200 and $600
_________________

Best Regards,

Paul

Senior Manager
Senior Manager
avatar
Joined: 30 Aug 2003
Posts: 325
Location: dallas , tx
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 13:57
Anand.. gotcha!! did same mistake :pc
_________________

shubhangi

SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 3

Kudos [?]: 29 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 14:00
I consider this question stupid.
I have seen companies who give a different percentage rate for different levels of sales.

For Example at car dealership if a salesman sells 10 cars then the percentage will be 10 per car and if he sells 20 then percentage will be 15 and if he sells less then 10 then percentage will be 5. What do think the dealer will pay to his sales person if that sales person sells 12 cars?
GMAT Club Legend
GMAT Club Legend
avatar
Joined: 15 Dec 2003
Posts: 4318
Followers: 17

Kudos [?]: 146 [0], given: 0

GMAT Tests User
 [#permalink] New post 12 Feb 2004, 14:29
Hmmm, what about a pen salesman whose commission is based on sales value. It could be very much possible that the salesman will not get any bonus until he sells 200$ worth of pens. Then from 200$-600$, he gets 5% and from sales more than 600$, he gets 8%. The car example comparison is not appropriate because the underlying good's unit is a luxury good for which the bonus scheme might be very different.
_________________

Best Regards,

Paul

Manager
Manager
avatar
Joined: 28 Jan 2004
Posts: 205
Location: India
Followers: 2

Kudos [?]: 10 [0], given: 4

GMAT Tests User
 [#permalink] New post 13 Feb 2004, 01:51
Answer is 36. I have seen Anandnk getting caught for the first time. Kudos Shubhangi for the cute good one......
GMAT Instructor
User avatar
Joined: 07 Jul 2003
Posts: 771
Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE
Followers: 9

Kudos [?]: 23 [0], given: 0

GMAT Tests User
 [#permalink] New post 14 Feb 2004, 01:29
anandnk wrote:
I consider this question stupid.
I have seen companies who give a different percentage rate for different levels of sales.

For Example at car dealership if a salesman sells 10 cars then the percentage will be 10 per car and if he sells 20 then percentage will be 15 and if he sells less then 10 then percentage will be 5. What do think the dealer will pay to his sales person if that sales person sells 12 cars?


Do you pay taxes? We get taxed the same way this salesperson gets paid.

This type of bonus structure is very common in sales and thus I don't think the question is "stupid", but a good example of something you might see on an actual GMAT.
_________________

Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

SVP
SVP
User avatar
Joined: 30 Oct 2003
Posts: 1798
Location: NewJersey USA
Followers: 3

Kudos [?]: 29 [0], given: 0

GMAT Tests User
 [#permalink] New post 14 Feb 2004, 06:08
hi Akamaibrah,

I do pay taxes. My friend earns $30000 as yearly pay and pays nothing in taxes. Another friend of mine earns $60,000 as yearly pay and pays $15000 in taxes at 25% tax rate because he falls in $35000 to 65000 bracket.
Isn't the problem given above same?
GMAT Instructor
User avatar
Joined: 07 Jul 2003
Posts: 771
Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE
Followers: 9

Kudos [?]: 23 [0], given: 0

GMAT Tests User
 [#permalink] New post 16 Feb 2004, 00:43
anandnk wrote:
hi Akamaibrah,

I do pay taxes. My friend earns $30000 as yearly pay and pays nothing in taxes. Another friend of mine earns $60,000 as yearly pay and pays $15000 in taxes at 25% tax rate because he falls in $35000 to 65000 bracket.
Isn't the problem given above same?


I'm glad you pay taxes. If so, then you should know that how much someone earns is insufficient information to calculate his/her taxes. What is important is what part of that income is taxable.

The point of my question is that once you get down to the "taxable" income figure, each dollar of this income is taxed according to where it lies on a scaled table of percentages. A person in a particular tax bracket only pays that percentage on income earned within that bracket, not his or her entire income.

I don't know what the real numbers are but something like first 7500 are not taxed, then 7500-15000 are taxed at 15% the 15001 to 23000 are taxed at 18% and so on. Hence, we have a scaled system similar to that of the salesperson's pay, where he make get a percentage commission on the first x items, then a different commission on anything in excess of x.

If you think about it, this is also why we have tax lookup tables -- it is not a straightforward calculation to figure out ones tax because a part of each person's income is taxed at different percentages.
_________________

Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

  [#permalink] 16 Feb 2004, 00:43
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic A salesperson for an automobile dealer earns... Bizzle 6 09 Oct 2013, 13:50
2 Experts publish their posts in the topic A salesperson makes 5 sales calls. The probability of a Smita04 2 28 Feb 2012, 21:57
3 As a bicycle salesperson, Norman earns a fixed salary of $20 JCLEONES 5 15 Jan 2008, 10:20
As a bicycle salesperson, Norman earns a fixed salary of $20 applecrisp 1 09 Dec 2007, 14:19
As a bicycle salesperson, Norman earns a fixed salary of $20 applecrisp 1 08 Dec 2007, 10:36
Display posts from previous: Sort by

A salesperson earns 5% on all sales between $200 and

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.