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30 Oct 2017, 23:04
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Question Stats:

65% (01:03) correct 35% (01:02) wrong based on 69 sessions

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A company makes a profit of 6 percent on its first $1,000 of sales each day, and 5 percent on all sales in excess of$1,000 for that day. How many dollars in profit will the company make on a day when sales are S dollars if S is greater than 1,000?

(A) 0.05S
(B) 0.06S
(C) 110
(D) 10 + 0.05S
(E) 60 + 0.05S
[Reveal] Spoiler: OA

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01 Nov 2017, 16:07
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KUDOS
Expert's post
Bunuel wrote:
A company makes a profit of 6 percent on its first $1,000 of sales each day, and 5 percent on all sales in excess of$1,000 for that day. How many dollars in profit will the company make on a day when sales are S dollars if S is greater than 1,000?

(A) 0.05S
(B) 0.06S
(C) 110
(D) 10 + 0.05S
(E) 60 + 0.05S

We can create the expression for the total profit earned:

0.06(1000) + 0.05(S - 1000)

60 + 0.05S - 50

0.05S + 10

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02 Nov 2017, 03:39
Bunuel wrote:
A company makes a profit of 6 percent on its first $1,000 of sales each day, and 5 percent on all sales in excess of$1,000 for that day. How many dollars in profit will the company make on a day when sales are S dollars if S is greater than 1,000?

(A) 0.05S
(B) 0.06S
(C) 110
(D) 10 + 0.05S
(E) 60 + 0.05S

Or just plug in some values to find out:

Say S = 1100
For the first 1000, profit is 6% i.e. $60 For the next 100, profit is 5% i.e.$5
Total profit is $65 Plug in 1100 in the options and you see that option (D) will give you 65. Answer (D) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: A company makes a profit of 6 percent on its first $1,000 of sales eac [#permalink] 02 Nov 2017, 03:39 Display posts from previous: Sort by # A company makes a profit of 6 percent on its first$1,000 of sales eac

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