In a certain furniture store, each week Nancy earns a salary of $240 p

450 = 240 + (5/100)*(Total Sales - 800)

i.e. (Total Sales - 800) = 20*(450-240) = 20*210 = 4200

i.e. Total Sales = 4200 + 800 = 5000

Answer: Option E

Thank you for prompt reply but didnt get below highlighted step :

450 = 240 + (5/100)*(Total Sales - 800)

450 = 240 + 5% of Sales above $800

and Sales above $800 = (Total Sales - 800)

E.g. if the totals sales = $1400 then sales above $800 = 1400-800 = $600


Now 5% of Sales above $800 = (5/100)*(Total Sales - 800)

Therefore,
450 = 240 + (5/100)*(Total Sales - 800)

I hope it helps you!

another way would be..
240 is fixed
she earns 450-240=210 above fixed amount..
now 210=5/100 of excess amount
or excess=4200..
total =4200+800=5000
ans E
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Another Approach:

Total bonus: 450- 240 = 210

210 is equivalent to 5% of total sales over 800 so

(X - 800).005 = 210

Solve for x

X= 5000

Done

Posted from my mobile device

Hi All,

You can solve this question algebraically or by TESTING the Answers. Here's how you can use the answers to your advantage…

Let's TEST answer D: $4250

IF Nancy sold $4250 in furniture, she'd get $240 + 5% of $3450….

240 + .05(3450) = 240 + 172.50 = $412.50

$412.50 is not enough money to match the $450 that she actually received, which means that answer D is TOO LOW. So we need an answer that gets her more money. There's only one answer that fits...

Final Answer:

GMAT assassins aren't born, they're made,
Rich

Hi Chetan2u- i understood everything except the highlighted one. please can you help me understand.

The original question is easy. There is a trap in this question that is not related to the difficulty of the question.

Since any amount of sales that Nancy achieves above $800 is subject to a 5% additional earnings for her, we simply use this known additional earnings to calculate her total sales last week.

Since $450 > $240, we know that Nancy's sales were above $800 last week.

Additional amount earned by Nancy = $450 - $240 = $210.

The amount of $210 represents 5% of an unknown quantity. So, we have

(5/100)*(unknown quantity in $) = 210
Unknown quantity = $4200

But the question does not ask for this amount. It asks for the total sales amount.

Since Nancy had already achieved $800 in sales, the amount of $4200 represents the additional sales she achieved. So the total amount of sales is the sum of the two amounts $800 and $4200, which is equal to $5,000.

ANSWER: E

Note: There is a trap answer (B).

450-240/0.05 = 4200

Thus, Total sales is 4200 + 800 = 5000, Answer will be (E)
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