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A sales associate earns a commission of 8% on her first $10,

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A sales associate earns a commission of 8% on her first $10, [#permalink] New post   16 Jul 2014, 00:04
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A sales associate earns a commission of 8% on her first $10,000 in sales revenue in a given week and a commission of 10% on any additional sales revenue that the associate generates that week. How much sales revenue did the associate generate last week?

(1) The sales associate earned a total of $1,500 in commission last week.

(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales.
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Bunuel
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink] New post   16 Jul 2014, 01:40
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A sales associate earns a commission of 8% on her first $10,000 in sales revenue in a given week and a commission of 10% on any additional sales revenue that the associate generates that week. How much sales revenue did the associate generate last week?

8% on first $10,000 = $800.

(1) The sales associate earned a total of $1,500 in commission last week. So, the commission from additional sales was $1,500 - $800 = $700, which means that additional sales was $700*10 = $7,000. Total sales = $10,000 + $7,000 = $17,000. Sufficient.

(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales. Total sales = $10,000 + $7,000 = $17,000. Sufficient.

Answer: D.
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink] New post   24 Sep 2015, 07:16
Hi Experts,

Why do we assume that the first sales is of $10,000 exact?

What if the first sales was of $12000 earning a commission of $960 and then the sale was of $5400 for a commission of $540? This way too the commission is $1500 but the total sales is more than $17k

Please advise what am I missing here?
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink] New post   24 Sep 2015, 07:27
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royrijit1 wrote:
Hi Experts,

Why do we assume that the first sales is of $10,000 exact?

What if the first sales was of $12000 earning a commission of $960 and then the sale was of $5400 for a commission of $540? This way too the commission is $1500 but the total sales is more than $17k

Please advise what am I missing here?


The stem says that a person earns a commission of 8% on her first $10,000 and a commission of 10% on any additional sales.

So, for example on $17,400 of sales the commission would be 8%*10,000 + 10%*7,400 = $1,540.
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink] New post   15 Jan 2024, 03:17
Bunuel wrote:
(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales. Total sales = $10,000 + $7,000 = $17,000. Sufficient.

Answer: D.


Hello Bunuel - How I interpreted Statement 2 is that sales associate would be eligible/qualified for 10% commission on additional sales of $7,000. I eliminated Statement 2 because last week he could have generated a revenue of $9,300, $9,400 .... ,or $9,900 and this additional $7,000 would have made him eligible for 10% commission. Statement 2 doesn't say that he would have been eligible for 10% commission on $7,000 worth of sales.

Hope my doubt is clear. Thank you! :)
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink] New post   15 Jan 2024, 14:28
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VikasBaloni wrote:
Bunuel wrote:
(2) Last week, the sales associate was eligible for the 10% commission rate on $7,000 of additional sales. Total sales = $10,000 + $7,000 = $17,000. Sufficient.

Answer: D.


Hello Bunuel - How I interpreted Statement 2 is that sales associate would be eligible/qualified for 10% commission on additional sales of $7,000. I eliminated Statement 2 because last week he could have generated a revenue of $9,300, $9,400 .... ,or $9,900 and this additional $7,000 would have made him eligible for 10% commission. Statement 2 doesn't say that he would have been eligible for 10% commission on $7,000 worth of sales.

Hope my doubt is clear. Thank you! :)


Sorry, I'm not exactly sure what you mean. However, the interpretation of Statement (2) in the solution is how the question was intended to be understood.
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Re: A sales associate earns a commission of 8% on her first $10, [#permalink]
15 Jan 2024, 14:28
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Bunuel
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