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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
Please provide an explanation with the help of variables
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
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soodia wrote:
pushpitkc wrote:
From the question stem, we have the following information about the Salary of the Salesman
Before March
Fixed salary : 500$
Commission : 5% over 1000$ sales


(1) In March, the salesman had received a fixed salary of $600 and a commission of 4 percent on sales above $800.
In March(after salary revision)
Fixed Salary : 600$
Commission : 4% over 800$ sales
Since we don't know what the salary earned by March, we cannot tell what were his sales.(Insufficient)

(2) In March, he received $104 more than he would have received according to his earlier pay structure.
Since we no idea about the new salary structure, we cannot tell the exact sales. Insufficient.

On combining both the statements,
If her salary post the March increase, the increase in salary is 104$ more.
Case 1:
Sales before March : 600$. Salary received : 500$(Fixed)
Sales in March : 900$. Salary received : 600$(Fixed) + 4%(of Salary over 800$) = 604
Difference in Salary : 104$

Case 2:
Sales before March : 1200$. Salary received : 500$(Fixed) + 5%(of Salary over 1000$) = 500 + 10 = 510
Sales in March : 1150$. Salary received : 600$(Fixed) + 4%(of Salary over 800$) = 600 + 14 = 614
Difference in Salary : 104$

Since we have different values of Sales in both the cases, but the same difference in their salaries.
The combination of the statements is not enough. Insufficient(Option E)




Hi pushpitkc

I cannot undrestand the problem of my way, moreover I cannot figure out what should be my approach

the combination of 1&2 we have: 600+0.04(X-800)=104+500+0.05(X-1000)


one equation and one variable.... it can be solved


Hi soodia & kartzcool

The key here is identifying which month's salary Statement 2 is providing. Is it for the month of March or for the previous month Feb

Obviously it has to be for the month of Feb because March sales will end on 31st March mid-night. Hence accounting can only be done in April.

Whereas statement 2 clearly mentions that in March he received X amount of salary as per revised structure. It is mentioned that structure was changed in March but its not mentioned that the structure will be changed for march salary onward.

IMO this is the hidden logic with the question. others can provide their views :-)
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
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there will be 2 equation based on the range

1. 600+0.04(X-800)=104+500
2. 600+0.04(X-800)=104+500 + .05(X-1000)

one equation and one variable...It is indeed one variable but in two different situation gives 2 answers


Kudos if you like the answer
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A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
From the statement:
x: sales in March
Salary: 500+(x-1,000)*0,05

(1) new salary: 600+(x-800)*0,04 Non Sufficient
(2) new salary = old salary + 104 Non Sufficient

Combining (1) and (2):
600+(x-800)*0,04 = 104+500+(x-1,000)*0,05

600+0,04x-32 = 604+0,05-50
0,01x = 14
x = 1,400
C is sufficient
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
What does it mean by "the pay structure of the salesman was changed in March"?

Does it mean that the structure was change in March and then was implemented in Apr
or it mean that it was immediately implemented in March?

Please explain.

Thank you.
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
Can someone provide a detailed explanation please. I don't get it ...
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
Could you please provide the source? I would like to know where it was taken from. Thank you.
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
As I said, does Actual GMAT plays this kind of tricks. If not than these kind of questions are actually time (most precious) waste. Moreover this question appeared in club test which again a question mark on the quality of the question being selected for club tests.
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
Expert Reply
deepak.brijendra wrote:
As I said, does Actual GMAT plays this kind of tricks. If not than these kind of questions are actually time (most precious) waste. Moreover this question appeared in club test which again a question mark on the quality of the question being selected for club tests.


The source of this question is Manhattan Review, not GMAT Club!
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Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]
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