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17 Feb 2022, 04:45
Kudos
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
57% (02:26) correct
43%
(03:19)
wrong
based on 84
sessions
History
Date
Time
Result
Not Attempted Yet
As a salesperson, John can choose one of two methods of annual payment: either an annual salary of $25,000 plus a 15 percent commission on total sales only if they exceed $100,000 or an annual salary of $10,000 plus a 25 percent commission on him total annual sales. What could his total annual sales be to generate the same annual pay with either method?
A. $175,000
B. $160,000
C. $125,000
D. $120,000
E. $60,000
A. $175,000
B. $160,000
C. $125,000
D. $120,000
E. $60,000
26 Feb 2022, 09:26
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Bunuel
Suppose his total sales is more than \(100,000 \) with a value equal to \(x\)
Then eqn to solve : \( 25000 + .15 ( 100,000 -x ) = 10,000 + .15(x)\)
\(x=0 \)
\(x=0\) which is not possible, hence we can see it would not be possible for him to get same annual pay using both methods,if his sales is more than \(100,000\). Hence his total sales must be less than \(100,000\)
There is only one option with total sales less than \(100,000\) i.e. option E
Just be to sure :
IF his total sales is \(60,000\) then his annual pay using first method : Flat \( 25,000\)
and annual pay using second method : \(10,000 + .25( 60,000) = 10,000 +15,000 = 25,000\\
\)
Hence with \(60,000 \) sales he gets same annual pay using both methods.
Ans E
Hope it's clear.
27 Feb 2022, 15:05
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Bunuel
Breaking Down the Info:
Set his commission (annual sales) as \(x\). First we can try the scenario where x > 100k. Then we have \(25 + 15\%(x) = 10 + 25\%*(x)\) (note we are given an if statement for the left side, that's why we assume x > 100k).
\(10\%x = 15\) and \(x = 150k\) which is not an answer. Then we can try the case where x < 100. Since only once choice has x < 100, we must choose E.
Answer: E
