It is currently 21 Nov 2017, 05:29

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A salesman normally gets a fixed salary of $500 and a commission of 5

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 42280

Kudos [?]: 132894 [0], given: 12391

A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 25 Jun 2017, 04:14
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

27% (01:08) correct 73% (01:18) wrong based on 83 sessions

HideShow timer Statistics

A salesman normally gets a fixed salary of $500 and a commission of 5 percent on sales above $1000 per month. If the pay structure of the salesman was changed in March, what were the sales of the salesman in March?

(1) In March, the salesman had received a fixed salary of $600 and a commission of 4 percent on sales above $800.
(2) In March, he received $104 more than he would have received according to his earlier pay structure.
[Reveal] Spoiler: OA

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Kudos [?]: 132894 [0], given: 12391

2 KUDOS received
BSchool Forum Moderator
User avatar
D
Joined: 26 Feb 2016
Posts: 1613

Kudos [?]: 687 [2], given: 17

Location: India
Concentration: General Management, Leadership
WE: Sales (Retail)
Premium Member CAT Tests
A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 25 Jun 2017, 06:20
2
This post received
KUDOS
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)
_________________

Stay hungry, Stay foolish

2017-2018 MBA Deadlines

Class of 2020: Rotman Thread | Schulich Thread
Class of 2019: Sauder Thread

Kudos [?]: 687 [2], given: 17

Manager
Manager
User avatar
B
Joined: 30 Apr 2017
Posts: 84

Kudos [?]: 2 [0], given: 67

Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 25 Oct 2017, 01:40
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

Kudos [?]: 2 [0], given: 67

Intern
Intern
avatar
B
Joined: 26 Feb 2017
Posts: 21

Kudos [?]: 1 [0], given: 62

Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 26 Oct 2017, 10:18
Please provide an explanation with the help of variables

Kudos [?]: 1 [0], given: 62

Director
Director
avatar
P
Joined: 25 Feb 2013
Posts: 560

Kudos [?]: 256 [0], given: 34

Location: India
Schools: Mannheim"19 (S)
GPA: 3.82
GMAT ToolKit User Reviews Badge
Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 26 Oct 2017, 12:40
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 :-)

Kudos [?]: 256 [0], given: 34

Intern
Intern
avatar
B
Joined: 28 Apr 2017
Posts: 38

Kudos [?]: 3 [0], given: 51

Re: A salesman normally gets a fixed salary of $500 and a commission of 5 [#permalink]

Show Tags

New post 27 Oct 2017, 11:41
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

Kudos [?]: 3 [0], given: 51

Re: A salesman normally gets a fixed salary of $500 and a commission of 5   [#permalink] 27 Oct 2017, 11:41
Display posts from previous: Sort by

A salesman normally gets a fixed salary of $500 and a commission of 5

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.