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# An auction house charges a commission of 15% on the first

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Manager
Joined: 29 Nov 2011
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An auction house charges a commission of 15% on the first [#permalink]

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28 May 2012, 19:37
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15% (low)

Question Stats:

79% (02:22) correct 21% (01:35) wrong based on 187 sessions

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An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of$50,000. What was the price of a painting for which the house charged a total commission of $24,000? A.$115,000
B. $160,000 C.$215,000
D. $240,000 E.$365,000
[Reveal] Spoiler: OA

Last edited by Bunuel on 29 May 2012, 00:22, edited 2 times in total.
Edited the question and added the OA
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Re: An auction house charges a commission of 15% on the first [#permalink]

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29 May 2012, 00:28
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Smita04 wrote:
An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of$50,000. What was the price of a painting for which the house charged a total commission of $24,000? A.$115,000
B. $160,000 C.$215,000
D. $240,000 E.$365,000

Say the price of the house was $x, then 0.15*50,000+0.1*(x-50,000)=24,000 --> x=$215,000 (15% of $50,000 plus 10% of the amount in excess of$50,000, which is x-50,000, should equal to total commission of $24,000). Answer: C. _________________ Moderator Joined: 01 Sep 2010 Posts: 2939 Followers: 679 Kudos [?]: 5391 [0], given: 946 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 06 Sep 2012, 18:37 Expert's post Bunuel I would ask one thing if I can: in this kind of problem algebra (set up an equation) is faster than for instance backsolving in general, or always depends on you ?? Thanks _________________ Manager Joined: 04 Oct 2011 Posts: 224 Location: India Concentration: Entrepreneurship, International Business GMAT 1: 440 Q33 V13 GMAT 2: 0 Q0 V0 GPA: 3 Followers: 0 Kudos [?]: 41 [3] , given: 44 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 06 Sep 2012, 19:54 3 This post received KUDOS 1 This post was BOOKMARKED carcass wrote: Bunuel I would ask one thing if I can: in this kind of problem algebra (set up an equation) is faster than for instance backsolving in general, or always depends on you ?? Thanks It Always depends on you! For this question i did in this way. 50000 - 10 % = 7500 Then commission for remaining amount will be 24000-7500=16500 Then amount which gives this 16500 as 10% should be 165000. Therefore summing up 165000+50000 = 215000 This was the way i felt easy for me. _________________ GMAT - Practice, Patience, Persistence Kudos if u like GMAT Club Legend Joined: 09 Sep 2013 Posts: 10236 Followers: 482 Kudos [?]: 124 [0], given: 0 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 05 Oct 2013, 10:34 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Director Status: 1,750 Q's attempted and counting Affiliations: University of Florida Joined: 09 Jul 2013 Posts: 513 Location: United States (FL) Schools: UFL (A) GMAT 1: 600 Q45 V29 GMAT 2: 590 Q35 V35 GMAT 3: 570 Q42 V28 GMAT 4: 610 Q44 V30 GPA: 3.45 WE: Accounting (Accounting) Followers: 25 Kudos [?]: 600 [0], given: 630 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 05 Oct 2013, 10:42 Quote: It Always depends on you! For this question i did in this way. 50000 - 10 % = 7500 Then commission for remaining amount will be 24000-7500=16500 Then amount which gives this 16500 as 10% should be 165000. Therefore summing up 165000+50000 = 215000 This was the way i felt easy for me. This is the way i did it. With several parts to the equation, I kind of tackled it one part at time instead of developing an equation. That's the way my mind works. I could have derived the equation after the fact but that would have been pointless since once you get the answer you are done. GMAT Club Legend Joined: 09 Sep 2013 Posts: 10236 Followers: 482 Kudos [?]: 124 [0], given: 0 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 01 Jul 2015, 10:57 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Senior Manager Joined: 15 Sep 2011 Posts: 331 Location: United States WE: Corporate Finance (Manufacturing) Followers: 6 Kudos [?]: 230 [0], given: 44 Re: An auction house charges a commission of 15% on the first [#permalink] ### Show Tags 01 Jul 2015, 18:02 1 This post was BOOKMARKED Back solving to arrive at$24,000. The variable is amount greater than $50,000 because 15% of 50,000 is$7,500 and therefore what brings the calculation to $16,500. A.$115,000 - 50,000 = 65,000 * 10% = $6,500. Not correct. B.$160,000 - 50,000 = 110,000 * 10% = $11,000. Not correct. C.$215,000 - 50,000 = 165,000 * 10% = 16,500. Correct.
D. $240,000 Going to be too high. Not correct. E.$365,000 Going to be too high. Not correct.

Thanks,
A
Re: An auction house charges a commission of 15% on the first   [#permalink] 01 Jul 2015, 18:02
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