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# A sales staff is composed of a sales manager and two sales

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Current Student
Joined: 29 Jan 2005
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A sales staff is composed of a sales manager and two sales [#permalink]

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15 Jan 2006, 03:02
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25% (medium)

Question Stats:

73% (01:37) correct 27% (01:39) wrong based on 254 sessions

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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%
[Reveal] Spoiler: OA

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Director
Joined: 04 Oct 2005
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15 Jan 2006, 03:07
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A for me.

Let managers comminsion rate be M.

m*5000+ 2*0.05*5000=1750
5000*m=1250
m=25/100=25%

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Current Student
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15 Jan 2006, 03:12
Good job Andy,

OA is a straight (A)

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Manager
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15 Jan 2006, 09:32
Guys, I don't understand the method of solving. Don't we have to assume that manager's base for commissions X1 and sales persons' base x2. And x1+x2=5000, than x1*m+x2*0.05=1750. After that the problem does not have the solution. Why you multiply 5000 by m and by 0.05 when different employees can have different base for the commisions?
Please, explain what I am missing.

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Senior Manager
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15 Jan 2006, 10:43
each persons commission is a percentage of total sales = 5000.

now the 2 sales guys have 5% each

5% of 5000 = 250

therfore for 2 sales guys toalt commision = 2*250 = 500.

the ramaining commision is the managers .. as

1750 = M + S1 + S2

now s1 +s2 = 500 Therfore M = 1250.

1250 = X/100 0f (5000) therefore x = 25.

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Manager
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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27 Nov 2013, 01:22
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Guys , another way of doing

First find 1750 is what % of 5000.
we get 35 %, then 2 sales people have 10 % (both 5% ) , then the remaining is 35%-10% = 25%( sales manager)

Hope you guys understood

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GMAT Club Legend
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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16 Sep 2015, 01:07
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CEO
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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16 Sep 2016, 07:33
GMATT73 wrote:
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%

pretty straight forward question
5% each sales person - 10% total. so 0.1*5,000 = 500. Manager earned 1,250\$ in commission. 1250/5000 = 0.25
so 25% - A

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Intern
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Re: A sales staff is composed of a sales manager and two sales [#permalink]

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01 Oct 2016, 23:24
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%

-----------------------------------------------------------------------------------
It is given that each sales person earns 5% commission on sales and the number of sales person is 2 which means the total percentage of commission that goes to the sales person is 5 * 2 = 10%

We also know that the total amount of commission that was earned by the whole sales staff (including manager, 3) is \$1,750
Total Sales Amount = \$5,000

Now, find \$1750 is what percentage(%) of \$5000
Let the unknown percentage be 'x'
5000 * 'x'/100 = 1750
'x' = 35%

Now, we know the total percentage of commission earned by the sales staff (including manager) is 35% and we also know the total percentage of commission earned by the sales people is 10%
Therefore, in order to find the commission rate that the sales manager earned during that week -
= total percentage of commission - total percentage of commission earned by the sales people
= 35% - 10%
= 25%

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Re: A sales staff is composed of a sales manager and two sales   [#permalink] 01 Oct 2016, 23:24
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