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

It is currently 29 Aug 2014, 06:43

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

Salesperson A's compensation for any week is $360 plus 6 per

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [0], given: 2699

Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 24 Feb 2014, 23:04
Expert's post
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

69% (02:43) correct 31% (01:58) wrong based on 129 sessions
The Official Guide For GMAT® Quantitative Review, 2ND Edition

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

Problem Solving
Question: 114
Category: Algebra Applied problems; Simultaneous equations
Page: 76
Difficulty: 600


GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project

Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution.

We'll be glad if you participate in development of this project:
1. Please provide your solutions to the questions;
2. Please vote for the best solutions by pressing Kudos button;
3. Please vote for the questions themselves by pressing Kudos button;
4. Please share your views on difficulty level of the questions, so that we have most precise evaluation.

Thank you!
[Reveal] Spoiler: OA

_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Kaplan GMAT Prep Discount CodesKnewton GMAT Discount CodesVeritas Prep GMAT Discount Codes
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [0], given: 2699

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 24 Feb 2014, 23:05
Expert's post
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

1 KUDOS received
Intern
Intern
User avatar
Status: Never Give up!!!
Joined: 02 Aug 2012
Posts: 40
Location: United States
Concentration: Finance, General Management
Followers: 0

Kudos [?]: 26 [1] , given: 19

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 25 Feb 2014, 01:01
1
This post received
KUDOS
Let A's total sales for the week be 'x'
Let B's total sales for the week be 'y'

Now A gets a fixed salary(salary irrespective of sales) + variable salary = 360 + 0.06*(x-1000)

B gets only a variable salary = 0.08*(y)

Now assuming A sells nothing. i.e 0 $
Then A's weekly income will be 360$
Since income of both has to be same 0.08*y = 360
thus y = 4500 $
Now A gets a fixed income irrespective of his sales. So A's total sales for the week = 0 and B's total sales for the week = 4500
Thus TOTAL weekly sales at which both get the same earnings = x+y = 4500$. Answer - Option (D)
Manager
Manager
User avatar
Joined: 14 Jan 2013
Posts: 158
Concentration: Strategy, Technology
GMAT Date: 08-01-2013
GPA: 3.7
WE: Consulting (Consulting)
Followers: 2

Kudos [?]: 46 [0], given: 29

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 25 Feb 2014, 03:55
Option C

I solved taking answer. Took C first and solved to get $1200 for A and B.
_________________

"Where are my Kudos" ............ Good Question = kudos

"Start enjoying all phases" & all Sections

__________________________________________________________________
http://gmatclub.com/forum/collection-of-articles-on-critical-reasoning-159959.html

percentages-700-800-level-questions-130588.html

700-to-800-level-quant-question-with-detail-soluition-143321.html

1 KUDOS received
Manager
Manager
User avatar
Status: GMATting
Joined: 21 Mar 2011
Posts: 108
Concentration: Strategy, Technology
GMAT 1: 590 Q45 V27
Followers: 1

Kudos [?]: 59 [1] , given: 104

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 25 Feb 2014, 21:08
1
This post received
KUDOS
A's Compensation = 360 + 0.06(A's Total Sales amount - 1000)
B's Compensation = 0.08(B's Total Sales amount)

Since we are asked for the amount of total weekly sales in which both salespeople earn the same compensation, we can assume the amount of A's Total Sales = B's Total Sales = x;

360 + 0.06(x - 1000) = 0.08x;
360 + 0.06x - 60 = 0.08x;
300 = 0.02x;
x = 300/0.02 = 30000/2 = 15,000;

Ans is (C).
1 KUDOS received
Senior Manager
Senior Manager
avatar
Joined: 20 Dec 2013
Posts: 269
Location: India
Followers: 0

Kudos [?]: 53 [1] , given: 29

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 26 Feb 2014, 01:19
1
This post received
KUDOS
Option C.
The equation is:360+6%(x-1000)=8% of x
Solving,
360=8% of x-6% of x +60
300=2% of x
x=15000
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [0], given: 2699

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 03:24
Expert's post
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Intern
Intern
User avatar
Status: Never Give up!!!
Joined: 02 Aug 2012
Posts: 40
Location: United States
Concentration: Finance, General Management
Followers: 0

Kudos [?]: 26 [0], given: 19

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 03:33
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.


I didnt get it.... Question says for what amount of TOTAL SALES...Total Sales = A's sale + B's sale ....so it has to be be A's sales = 0 and B's sales = 4500 and Option D.
If it is 15000 $ = B's sale then the answer should be 30000$ as the total sales.

Thus If each has a sales of $15000 then the total sales will be $ 30000 Option C just cant be the right answer. unless u interpret - For what amount of total weekly sales would both salespeople earn the same compensation? - as sales of any one person!!! - which isnt the intended meaning conveyed by the english of the question.
Intern
Intern
User avatar
Status: Never Give up!!!
Joined: 02 Aug 2012
Posts: 40
Location: United States
Concentration: Finance, General Management
Followers: 0

Kudos [?]: 26 [0], given: 19

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 03:59
I just checked up the Official review and it is C... i mean i really, honestly and humbly think that the GMAC either got the question wording wrong or the answer wrong.
So i still feel given the question wording D is the right answer. GMAC probably made a mistake with the question wording.(After all they are humans too)
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [0], given: 2699

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 04:01
Expert's post
Manofsteel wrote:
I just checked up the Official review and it is C... i mean i really, honestly and humbly think that the GMAC either got the question wording wrong or the answer wrong.
So i still feel given the question wording D is the right answer. GMAC probably made a mistake with the question wording.(After all they are humans too)


Check again: D is wrong.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Intern
Intern
User avatar
Status: Never Give up!!!
Joined: 02 Aug 2012
Posts: 40
Location: United States
Concentration: Finance, General Management
Followers: 0

Kudos [?]: 26 [0], given: 19

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 04:07
Bunuel wrote:
Manofsteel wrote:
I just checked up the Official review and it is C... i mean i really, honestly and humbly think that the GMAC either got the question wording wrong or the answer wrong.
So i still feel given the question wording D is the right answer. GMAC probably made a mistake with the question wording.(After all they are humans too)


Check again: D is wrong.


why is it wrong? i still dont get it though! can you explain
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [0], given: 2699

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 01 Mar 2014, 06:20
Expert's post
Manofsteel wrote:
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.


I didnt get it.... Question says for what amount of TOTAL SALES...Total Sales = A's sale + B's sale ....so it has to be be A's sales = 0 and B's sales = 4500 and Option D.
If it is 15000 $ = B's sale then the answer should be 30000$ as the total sales.

Thus If each has a sales of $15000 then the total sales will be $ 30000 Option C just cant be the right answer. unless u interpret - For what amount of total weekly sales would both salespeople earn the same compensation? - as sales of any one person!!! - which isnt the intended meaning conveyed by the english of the question.


The questions asks for what amount the two compensation plans would give the same compensation.

Similar questions:
health-insurance-plan-a-requires-the-insured-to-pay-1000-or-106447.html
each-week-harry-is-paid-x-dollars-per-hour-for-the-first-131475.html
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Intern
Intern
avatar
Joined: 30 Jan 2014
Posts: 17
Followers: 0

Kudos [?]: 0 [0], given: 15

GMAT ToolKit User
Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 10 Mar 2014, 07:18
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.


Why did you substract 1000 from x while computing A's compensation ? I understand the question as if A made a $2000 total sales, his compensation is 360+ 2000*0,06
Expert Post
1 KUDOS received
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 25203
Followers: 3415

Kudos [?]: 25000 [1] , given: 2699

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 10 Mar 2014, 07:26
1
This post received
KUDOS
Expert's post
lool wrote:
Bunuel wrote:
SOLUTION

Salesperson A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salespeople earn the same compensation?

(A) $21,000
(B) $18,000
(C) $15,000
(D) $ 4,500
(E) $ 4,000

A's compensation = $360 + 6 percent of the A's total sales above $1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of $1,000, then A's compensation is $360 and B's compensation is $80, so for $1000 A's compensation is greater than that of B's BUT if each has the sales of $100,000, then A's compensation is $360+0.06*99,000=$6,300 and B's compensation is $8,000, so for $100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salespeople earn the same compensation?

Say that amount is $x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=$15,000. So, if each has the sales of $15,000, then A's compensation is the same as that of B's.

Answer: C.


Why did you substract 1000 from x while computing A's compensation ? I understand the question as if A made a $2000 total sales, his compensation is 360+ 2000*0,06


No.

The stem says that "A's compensation for any week is $360 plus 6 percent of the portion of A's total sales above $1,000 for that week."

Thus if A's sales were $2,000 for a certain week, then the compensation would be $360 plus 6 percent of the portion of A's total sales above $1,000, so 6 percent of $2,000-$1,000=$1,000: 360 + 0.06*1,000.

Hope it's clear.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Intern
Intern
avatar
Joined: 21 Jan 2014
Posts: 18
Location: Germany
Concentration: Entrepreneurship, Strategy
GMAT Date: 05-28-2014
GPA: 3.9
WE: Consulting (Entertainment and Sports)
Followers: 0

Kudos [?]: 5 [0], given: 9

Re: Salesperson A's compensation for any week is $360 plus 6 per [#permalink] New post 10 Mar 2014, 14:59
I can't believe, how long it took me to totally understand this damn formula :(
Re: Salesperson A's compensation for any week is $360 plus 6 per   [#permalink] 10 Mar 2014, 14:59
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic From 360 to 700+ score in 10 Weeks? Is It Possible? ishavir 1 15 Jun 2014, 05:13
2 Experts publish their posts in the topic Eight identical machines can produce 360 aluminum cans per MitDavidDv 7 07 Jun 2011, 13:31
Experts publish their posts in the topic 6 Weeks k5suitd 2 08 Jun 2009, 05:54
Salesperson A's compensation for any week is $360 plus 6 gluon 11 15 Nov 2007, 08:51
4 Experts publish their posts in the topic Salesperson A's compensation for any week is $360 plus 6 jbsears 14 23 Jun 2006, 02:22
Display posts from previous: Sort by

Salesperson A's compensation for any week is $360 plus 6 per

  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®.