GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Aug 2019, 04:33

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

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

Find Similar Topics 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 57191
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% (01:42) correct 73% (01:57) wrong based on 128 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.

_________________
Senior PS Moderator
User avatar
V
Joined: 26 Feb 2016
Posts: 3355
Location: India
GPA: 3.12
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
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)
_________________
You've got what it takes, but it will take everything you've got
Manager
Manager
User avatar
B
Joined: 30 Apr 2017
Posts: 59
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
Intern
Intern
avatar
B
Joined: 26 Feb 2017
Posts: 11
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
Retired Moderator
avatar
D
Joined: 25 Feb 2013
Posts: 1193
Location: India
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 :-)
Intern
Intern
avatar
B
Joined: 28 Apr 2017
Posts: 36
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
1
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
Intern
Intern
avatar
B
Joined: 19 Nov 2018
Posts: 2
A salesman normally gets a fixed salary of $500 and a commission of 5  [#permalink]

Show Tags

New post 09 Aug 2019, 02:22
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
Manager
Manager
avatar
B
Joined: 18 Aug 2017
Posts: 86
GMAT ToolKit User CAT Tests
Re: A salesman normally gets a fixed salary of $500 and a commission of 5  [#permalink]

Show Tags

New post 09 Aug 2019, 09:14
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.
Intern
Intern
avatar
B
Joined: 21 Mar 2019
Posts: 10
Re: A salesman normally gets a fixed salary of $500 and a commission of 5  [#permalink]

Show Tags

New post 10 Aug 2019, 06:21
Can someone provide a detailed explanation please. I don't get it ...
Manager
Manager
avatar
S
Joined: 29 May 2016
Posts: 65
Location: United States
Concentration: Finance, Strategy
GPA: 3.93
WE: Corporate Finance (Investment Banking)
Premium Member
Re: A salesman normally gets a fixed salary of $500 and a commission of 5  [#permalink]

Show Tags

New post 10 Aug 2019, 07:06
Could you please provide the source? I would like to know where it was taken from. Thank you.
GMAT Club Bot
Re: A salesman normally gets a fixed salary of $500 and a commission of 5   [#permalink] 10 Aug 2019, 07:06
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  





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