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Difficulty:
35%
(medium)
Question Stats:
72% (02:07) correct
28%
(02:18)
wrong
based on 125
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A sales staff is composed of a sales manager and two sales people, all of whom earn commission as a percentage of sales. Each sales person earns 5% commission on sales. In a given week, the sales staff earned a total of $1,750 in commissions on $5,000 worth of sales. What commission rate did the sales manager earn during that week?
(A) 25%
(B) 30%
(C) 35%
(D) 40%
(E) 45%
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(A) 25%
(B) 30%
(C) 35%
(D) 40%
(E) 45%
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moneysniper365
Joined: 19 Jan 2020
Last visit: 06 Mar 2023
Posts: 2
Location: Spain
Concentration: Finance, Strategy
Posts: 2
5000 total sales
1750 --> 35% over total sales
We subtract both 5% of the 2 salespeople
Remeaning: 25% > Sales manager
Final Answer: A
1750 --> 35% over total sales
We subtract both 5% of the 2 salespeople
Remeaning: 25% > Sales manager
Final Answer: A
Each sales person earns 5 percent on total sales and there are 2 sales persons. So total commission earned by them--> 5000*5%*2= 500
Commission earned by the sales manager= 1750-500= 1250
Commission earned by the sales manager as a percentage of total sales= 1250/5000 = 25%
Answer: A
Commission earned by the sales manager= 1750-500= 1250
Commission earned by the sales manager as a percentage of total sales= 1250/5000 = 25%
Answer: A
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Bunuel
commision of sales people ; .05*2*5000 ; 500
so left with ; 1750-500; 1250 commision which is of manager
i.e
1250/5000 ; 25%
IMO A
ScottTargetTestPrep
Expert
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 09 Sep 2026
Posts: 22,736
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert reply
Posts: 22,736
Bunuel
We can let n = the percent commission rate of the sales manager. We create the equation:
5,000 x 0.05 + 5,000 x 0.05 + n/100 x 5,000 = 1750
250 + 250 + 50n = 1750
50n = 1250
n = 25
Answer: A
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