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Sue's monthly earnings consist of a monthly salary and a 4 [#permalink]
05 Jun 2008, 11:11

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Sue's monthly earnings consist of a monthly salary and a 4 percent commission on the portion of her monthly sales that is in excess of $2,000. If Sue's monthly salary was the same in July as in August, how much greater were her sales in July than in August?

(1) Sue's monthly earnings were $3,620 in July and $3,580 in August. (2) Sue's monthly salary was $3,500 in July and in August.

I go with A Let monthly salary = x+0.04(y-2000) where x=monthly salary and y= monthly sales taking equation (1) 3620=x+0.04(y1-2000) &3580=x+0.04(y2-2000) {since monthly salary is the same) above equation can be solved to give y1-y2.........SUFFICIENT

taking (2) monthly salary is same so cant say anything abt sales..........INSUFICIENT

Sue's monthly earnings consist of a monthly salary and a 4 percent commission on the portion of her monthly sales that is in excess of $2,000. If Sue's monthly salary was the same in July as in August, how much greater were her sales in July than in August?

(1) Sue's monthly earnings were $3,620 in July and $3,580 in August. (2) Sue's monthly salary was $3,500 in July and in August.

A.

3620 - 3580 = 40 , 40 =( Total_sale - 2000)* 4/100 total sale was greater than 1000$

Sue's monthly earnings consist of a monthly salary and a 4 percent commission on the portion of her monthly sales that is in excess of $2,000. If Sue's monthly salary was the same in July as in August, how much greater were her sales in July than in August?

(1) Sue's monthly earnings were $3,620 in July and $3,580 in August. (2) Sue's monthly salary was $3,500 in July and in August.

IMO A is the answer

pretty good question though coz C seems to be the easier choice here _________________

If that is the case, then the statement in the stem "Sue's monthly salary was the same in July as in August" is inaccurate, so the question is flawed, and E is then the answer.

Sue's monthly earnings consist of a monthly salary and a 4 percent commission on the portion of her monthly sales that is in excess of $2,000. If Sue's monthly salary was the same in July as in August, how much greater were her sales in July than in August?

(1) Sue's monthly earnings were $3,620 in July and $3,580 in August. (2) Sue's monthly salary was $3,500 in July and in August.

Sue's monthly earnings consist of a monthly salary and a 4 percent commission on the portion of her monthly sales that is in excess of $2,000. If Sue's monthly salary was the same in July as in August, how much greater were her sales in July than in August?

(1) Sue's monthly earnings were $3,620 in July and $3,580 in August. (2) Sue's monthly salary was $3,500 in July and in August.

X+.04(Y-2000)

1:

X+.04(J-2000)=3620

X+.04(A-2000)=3580

--> 4J/100-80+X=3620 --> 370000=4J+100X -->

J=-25X+92500 A=-25X+91500

J-A = 1000

2: Insuff.

A

_________________

------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

I don't think that (1) is sufficient, for we don't know her monthly salary. For all we know, it is $3,580 and she sold nothing in August. Then her commission in July, $40, would have been 4% of x - 2,000, where x is her July sales (i.e. $3,000)

I don't think that (1) is sufficient, for we don't know her monthly salary. For all we know, it is $3,580 and she sold nothing in August. Then her commission in July, $40, would have been 4% of x - 2,000, where x is her July sales (i.e. $3,000)

That's true, but $40 is 4% of $1000.

No matter how you look at it, you'll find that the difference is $1,000. _________________

------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

Imagine that her salary were $3,580 and she had sold $1,500 in August. What would her income be? And she had sold $3,000?

If, in August, her income was $3,580 and she sold $1,500, then her base salary is $3,580 because her sales must be over $2000 in order for her to earn 4% of those sales.

Don't focus on the base salary. Instead, focus on the difference of $40.

You know that she earns the same base salary from month to month, so the difference has to come from the sales commission of 4%. If she earns 4% of some number (x) and that gets her $40 more, then we have the equation of .04x = 40. The answer is $1000. No matter what you make the base salary, the difference in commission is always going to be $40.

HOWEVER....I do see your point. If she sold nothing, she would get the same base salary. Then the next month, in order for her to earn $40 more than her base salary, she has to sell $3,000 ($1,000 more than the 2,000) because x - 2000 * .04 = $40. X here has to be $3,000. The difference would be $3,000, not $1,000.

Good point kevincan, this is not an air-tight question.

The question really should state that she sold at least $2,000 every month. Then sales of $0 would not be possible and we would know that $1,000 had to be the answer and #1 was sufficient, but without that information, it truly is insufficient.

_________________

------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

Imagine that her salary were $3,580 and she had sold $1,500 in August. What would her income be? And she had sold $3,000?

If, in August, her income was $3,580 and she sold $1,500, then her base salary is $3,580 because her sales must be over $2000 in order for her to earn 4% of those sales. That is right

Don't focus on the base salary. Instead, focus on the difference of $40.

You know that she earns the same base salary from month to month, so the difference has to come from the sales commission of 4%. If she earns 4% of some number (x) and that gets her $40 more, then we have the equation of .04x = 40. The answer is $1000. No matter what you make the base salary, the difference in commission is always going to be $40.

Do you agree that in order to have monthly earnings of $3,620 in July, her sales have had to be $3000 ? Remember that the first $2,000 of sales don't have an impact on her monthly earnings.

Imagine that her salary were $3,580 and she had sold $1,500 in August. What would her income be? And she had sold $3,000?

If, in August, her income was $3,580 and she sold $1,500, then her base salary is $3,580 because her sales must be over $2000 in order for her to earn 4% of those sales.

Don't focus on the base salary. Instead, focus on the difference of $40.

You know that she earns the same base salary from month to month, so the difference has to come from the sales commission of 4%. If she earns 4% of some number (x) and that gets her $40 more, then we have the equation of .04x = 40. The answer is $1000. No matter what you make the base salary, the difference in commission is always going to be $40.

HOWEVER....I do see your point. If she sold nothing, she would get the same base salary. Then the next month, in order for her to earn $40 more than her base salary, she has to sell $3,000 ($1,000 more than the 2,000) because x - 2000 * .04 = $40. X here has to be $3,000. The difference would be $3,000, not $1,000.

Good point kevincan, this is not an air-tight question.

The question really should state that she sold at least $2,000 every month. Then sales of $0 would not be possible and we would know that $1,000 had to be the answer and #1 was sufficient, but without that information, it truly is insufficient.

Perhaps the question was testing our ability to consider the possiblilty that her base salary was $3,580. I don't see the question as flawed

Maybe it is flawed, but we're not sure yet because you've not posted the OA.

kevincan wrote:

jallenmorris wrote:

kevincan wrote:

Imagine that her salary were $3,580 and she had sold $1,500 in August. What would her income be? And she had sold $3,000?

If, in August, her income was $3,580 and she sold $1,500, then her base salary is $3,580 because her sales must be over $2000 in order for her to earn 4% of those sales.

Don't focus on the base salary. Instead, focus on the difference of $40.

You know that she earns the same base salary from month to month, so the difference has to come from the sales commission of 4%. If she earns 4% of some number (x) and that gets her $40 more, then we have the equation of .04x = 40. The answer is $1000. No matter what you make the base salary, the difference in commission is always going to be $40.

HOWEVER....I do see your point. If she sold nothing, she would get the same base salary. Then the next month, in order for her to earn $40 more than her base salary, she has to sell $3,000 ($1,000 more than the 2,000) because x - 2000 * .04 = $40. X here has to be $3,000. The difference would be $3,000, not $1,000.

Good point kevincan, this is not an air-tight question.

The question really should state that she sold at least $2,000 every month. Then sales of $0 would not be possible and we would know that $1,000 had to be the answer and #1 was sufficient, but without that information, it truly is insufficient.

Perhaps the question was testing our ability to consider the possiblilty that her base salary was $3,580. I don't see the question as flawed

_________________

------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$.

wow. I also thought the answer was A. But after reading your posts, i should say, it should be C because: - problem asks for the difference in sales. - and without giving base salary nor sales for each month, we have to account for so many other possibilities (all positive integers less than 2000) Great post

There is no need 2 know her salary as its the same 4 all the months, so we can just cancel it out frm the toal. We r intersted in the differewcne in sales ,that we can find out by the equations.

kevincan wrote:

kevincan wrote:

For (1), what if Sue sold nothing in July ?

I don't think that (1) is sufficient, for we don't know her monthly salary. For all we know, it is $3,580 and she sold nothing in August. Then her commission in July, $40, would have been 4% of x - 2,000, where x is her July sales (i.e. $3,000)