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An auction house charges a commission of 15% on the first
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Updated on: 29 May 2012, 00:22
Question Stats:
81% (01:14) correct 19% (01:39) wrong based on 292 sessions
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An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000. What was the price of a painting for which the house charged a total commission of $24,000? A. $115,000 B. $160,000 C. $215,000 D. $240,000 E. $365,000
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Originally posted by Smita04 on 28 May 2012, 19:37.
Last edited by Bunuel on 29 May 2012, 00:22, edited 2 times in total.
Edited the question and added the OA




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Re: An auction house charges a commission of 15% on the first
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06 Sep 2012, 19:54
carcass wrote: Bunuel I would ask one thing if I can: in this kind of problem algebra (set up an equation) is faster than for instance backsolving in general, or always depends on you ??
Thanks It Always depends on you! For this question i did in this way. 50000  10 % = 7500 Then commission for remaining amount will be 240007500=16500 Then amount which gives this 16500 as 10% should be 165000. Therefore summing up 165000+50000 = 215000 This was the way i felt easy for me.
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Re: An auction house charges a commission of 15% on the first
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29 May 2012, 00:28
Smita04 wrote: An auction house charges a commission of 15% on the first $50,000 of the sale price of an item, plus 10% on the amount of of the sale price in excess of $50,000. What was the price of a painting for which the house charged a total commission of $24,000?
A. $115,000 B. $160,000 C. $215,000 D. $240,000 E. $365,000 Say the price of the house was $x, then 0.15*50,000+0.1*(x50,000)=24,000 > x=$215,000 (15% of $50,000 plus 10% of the amount in excess of $50,000, which is x50,000, should equal to total commission of $24,000). Answer: C.
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Re: An auction house charges a commission of 15% on the first
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06 Sep 2012, 18:37



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Re: An auction house charges a commission of 15% on the first
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05 Oct 2013, 10:42
Quote: It Always depends on you! For this question i did in this way. 50000  10 % = 7500 Then commission for remaining amount will be 240007500=16500 Then amount which gives this 16500 as 10% should be 165000. Therefore summing up 165000+50000 = 215000 This was the way i felt easy for me. This is the way i did it. With several parts to the equation, I kind of tackled it one part at time instead of developing an equation. That's the way my mind works. I could have derived the equation after the fact but that would have been pointless since once you get the answer you are done.



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Re: An auction house charges a commission of 15% on the first
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01 Jul 2015, 18:02
Back solving to arrive at $24,000. The variable is amount greater than $50,000 because 15% of 50,000 is $7,500 and therefore what brings the calculation to $16,500.
A. $115,000  50,000 = 65,000 * 10% = $6,500. Not correct. B. $160,000  50,000 = 110,000 * 10% = $11,000. Not correct. C. $215,000  50,000 = 165,000 * 10% = 16,500. Correct. D. $240,000 Going to be too high. Not correct. E. $365,000 Going to be too high. Not correct.
Thanks, A



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Re: An auction house charges a commission of 15% on the first
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07 Feb 2018, 12:13
Hi All, This question can be solved by TESTing THE ANSWERS. We're told that the commission is 15% of the first $50,000 (so that's $7,500) and 10% of the anything above $50,000. Then we're told that the total commission on an item was $24,000. We're asked for the overall price of the item. Let's TEST Answer B: $160,000 We already know that the first $7,500 comes from the first $50,000. 10% of the remaining $110,000 = $11,000 $7500 + $11000 = $18,500 which is TOO LOW. Eliminate Answers B and A. Next, Let's TEST Answer D: $240,000 We already know that the first $7,500 comes from the first $50,000. 10% of the remaining $190,000 = $19,000 $7500 + $19000 = $26,500 which is TOO HIGH. Eliminate Answers D and E. There's only one answer left. Final Answer: GMAT assassins aren't born, they're made, Rich
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Re: An auction house charges a commission of 15% on the first &nbs
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07 Feb 2018, 12:13






