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# A salesperson for an automobile dealer earns an annual salary of \$25,0

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Intern
Joined: 26 Mar 2013
Posts: 4
A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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09 Oct 2013, 14:50
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74% (01:04) correct 26% (01:18) wrong based on 172 sessions

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A salesperson for an automobile dealer earns an annual salary of \$25,000 plus a commission of 10% of the salesperson's sales over \$100,000. If x is the dollar amount of sales in a certain year and x is greater than \$100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)
Intern
Joined: 26 Mar 2013
Posts: 4
Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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09 Oct 2013, 14:55
what I understand from the question is that the salesperson earns 10% of sales over \$100,000.
meaning:
- if sales were \$90,000 he gains 0% of that amount
- if sales were of \$110,000 he gains 10% of \$110,000 which equals \$11,000

but according to the solution he gains 10% of \$10,000. Where is my misconception. I don't understand.
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Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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09 Oct 2013, 18:18
1
Bizzle wrote:
what I understand from the question is that the salesperson earns 10% of sales over \$100,000.
meaning:
- if sales were \$90,000 he gains 0% of that amount
- if sales were of \$110,000 he gains 10% of \$110,000 which equals \$11,000

but according to the solution he gains 10% of \$10,000. Where is my misconception. I don't understand.

hi!

so his salary is 25,000+.1(x-100,000), when X>100,000 let's use some numbers to illustrate. say his sales are 120,000, in the formula this would be 25000+.1(120,000-100,000). So he is earning 25,000 + .1(20,000). His commission is ONLY on the amount above 100,000. He doesn't gain a commission on the entire 120,000 in this example. So his total salary would then be 27,000
Intern
Joined: 26 Mar 2013
Posts: 4
Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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09 Oct 2013, 19:06
AccipiterQ wrote:
Bizzle wrote:
what I understand from the question is that the salesperson earns 10% of sales over \$100,000.
meaning:
- if sales were \$90,000 he gains 0% of that amount
- if sales were of \$110,000 he gains 10% of \$110,000 which equals \$11,000

but according to the solution he gains 10% of \$10,000. Where is my misconception. I don't understand.

hi!

so his salary is 25,000+.1(x-100,000), when X>100,000 let's use some numbers to illustrate. say his sales are 120,000, in the formula this would be 25000+.1(120,000-100,000). So he is earning 25,000 + .1(20,000). His commission is ONLY on the amount above 100,000. He doesn't gain a commission on the entire 120,000 in this example. So his total salary would then be 27,000

I know what the answer is and how the math around it works. but regar dint the question stem, how do we know for sure he wins comissions of 10%(x-100,000) and not 10%(x). Thanx
Intern
Joined: 29 Jul 2013
Posts: 8
Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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10 Oct 2013, 01:40
Bizzle wrote:
AccipiterQ wrote:
Bizzle wrote:
what I understand from the question is that the salesperson earns 10% of sales over \$100,000.
meaning:
- if sales were \$90,000 he gains 0% of that amount
- if sales were of \$110,000 he gains 10% of \$110,000 which equals \$11,000

but according to the solution he gains 10% of \$10,000. Where is my misconception. I don't understand.

hi!

so his salary is 25,000+.1(x-100,000), when X>100,000 let's use some numbers to illustrate. say his sales are 120,000, in the formula this would be 25000+.1(120,000-100,000). So he is earning 25,000 + .1(20,000). His commission is ONLY on the amount above 100,000. He doesn't gain a commission on the entire 120,000 in this example. So his total salary would then be 27,000

I know what the answer is and how the math around it works. but regar dint the question stem, how do we know for sure he wins comissions of 10%(x-100,000) and not 10%(x). Thanx

I suppose because the question states "plus a commission of 10% of the salesperson's sales over \$100,000." So the highlighted part indicates that the 10% commission applies to any excess sales above \$100,000. At least that's how I interpreted it. I thought of the same thing at first, but i read the question again and it made more sense the second time. Also it'd be far too easy and just be 0.1x, there has to be a catch somewhere .
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Posts: 50004
Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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10 Oct 2013, 02:39
Bizzle wrote:
A salesperson for an automobile dealer earns an annual salary of \$25,000 plus a commission of 10% of the salesperson's sales over \$100,000. If x is the dollar amount of sales in a certain year and x is greater than \$100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)

what I understand from the question is that the salesperson earns 10% of sales over \$100,000.
meaning:
- if sales were \$90,000 he gains 0% of that amount
- if sales were of \$110,000 he gains 10% of \$110,000 which equals \$11,000

but according to the solution he gains 10% of \$10,000. Where is my misconception. I don't understand.

Stem says that "a salesperson earns a commission of 10% of the salesperson's sales over \$100,000".
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Intern
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Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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10 Oct 2013, 08:01
Bunuel wrote:
Stem says that "a salesperson earns a commission of 10% of the salesperson's sales over \$100,000".

Haha it all seems so simple right? But then again if that is so.... How would the GMAT test-makers, or how would you word the question stem if you wanted to actually mean that the salesperson would gain a 10% of sales commission but only if his sales are greater than a certain amount. For example, that we would actually mean that if he sold \$120,000 we would gain 10% of \$120,000 since it was OVER the qualifying amount of \$100,000. And another salesperson who just sold \$70,000 would not gain any commission because his sales amount did no reach the minimum amount for the 10% over sales to take effect.

So what i really want to understand is then how would the wording be any different if the answer was (A) ?

Because personally i would write, the question for answer (E) as "10% of the difference in the salesperson’s sales over \$100,000" .... But i couldnt think of any other way to write the question other than how it is already wrtitten, if i would actually want to mean answer (A).

Or maybe its just the language barrier that english is not my native language that is making me understand that statement erroneously
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Re: A salesperson for an automobile dealer earns an annual salary of \$25,0  [#permalink]

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10 May 2018, 10:43
Bizzle wrote:
A salesperson for an automobile dealer earns an annual salary of \$25,000 plus a commission of 10% of the salesperson's sales over \$100,000. If x is the dollar amount of sales in a certain year and x is greater than \$100,000, which of the following expresses the salesperson's total earnings, in dollars, for the year?

A) 25,000 + 0.1x
B) 35,000 + 0.1x
C) 125,000 + 0.1x
D) 25,000 + 0.1(100,000 - x)
E) 25,000 + 0.1(x - 100,000)

We can create the equation:

Earnings = 25,000 + 0.1(x - 100,000)

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Re: A salesperson for an automobile dealer earns an annual salary of \$25,0 &nbs [#permalink] 10 May 2018, 10:43
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