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# As a salesperson, Phyllis can choose one of two methods of a

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Math Expert
Joined: 02 Sep 2009
Posts: 60555
As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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05 Mar 2014, 02:06
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The Official Guide For GMAT® Quantitative Review, 2ND Edition

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000 (B)$120,000
(C) $125,000 (D)$130,000
(E) $132,000 Problem Solving Question: 127 Category: Algebra Applied problems Page: 78 Difficulty: 600 GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution. We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation. Thank you! _________________ Math Expert Joined: 02 Sep 2009 Posts: 60555 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 05 Mar 2014, 02:06 1 SOLUTION As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method? (A)$100,000
(B) $120,000 (C)$125,000
(D) $130,000 (E)$132,000

35,000 = 10,000 + 0.2*x --> x = 125,000.

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Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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05 Mar 2014, 20:48
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Answer = (C) $125,000 35000 = 10000 + 25000 We require to calculate sales which creates a commission of 25000 @ 20% = $$25000* \frac{100}{20}= 125000$$ Manager Status: GMATting Joined: 21 Mar 2011 Posts: 105 Concentration: Strategy, Technology GMAT 1: 590 Q45 V27 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 05 Mar 2014, 21:15 2 1st method of annual payment = 35,000 + no commission = 35,000 2nd method of annual payment = 10,000 + 1/5TS, where TS is Total Sales Since the annual pay is the same, as per the question, we can equate the 2 equations: 35,000 = 10,000 + 1/5 TS 1/5 TS = 25,000 TS = 125,000 Ans is (C) Intern Joined: 03 Aug 2012 Posts: 19 Location: United States (OR) Concentration: Finance, International Business GPA: 3.53 WE: Analyst (Entertainment and Sports) Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 05 Mar 2014, 22:58 1 Option #1: Annual Salary (A) =$35,000

Option #2:

Annual Salary (A) = $10,000 + .2 * Total Sales (S) Solution: Step 1 -->$35,000 = $10,000 + (1/5)S Step 2 -->$25,000 = (1/5)S
Step 3 --> $25,000(5/1) = S Step 4 -->$125,000 = S

Math Expert
Joined: 02 Sep 2009
Posts: 60555
Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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08 Mar 2014, 12:14
SOLUTION

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000 (B)$120,000
(C) $125,000 (D)$130,000
(E) $132,000 35,000 = 10,000 + 0.2*x --> x = 125,000. Answer: C. _________________ Manager Joined: 05 Jul 2015 Posts: 93 Concentration: Real Estate, International Business GMAT 1: 600 Q33 V40 GPA: 3.3 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 22 Nov 2015, 10:39 Took me 45 seconds total. 35=10+(1/5)X 25*5 = 125 EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 15958 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: Q170 V170 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 25 Nov 2015, 15:51 Hi All, This question can be solved by TESTing THE ANSWERS. From the information in the prompt, we're looking for a sales total that, when we take 20% of it, gives us$25,000. While this can be solved algebraically, we do have 5 answer choices to use as reference.

If Sales = $120,000 20% of$120,000 = (1/5)(120,000) = 24,000
This is remarkably close, but it's just a little TOO SMALL...

If Sales = $125,000 20% of$125,000 = (1/5)(125,000) = 25,000
This is an exact MATCH for what we were looking for, so this MUST be the answer.

GMAT assassins aren't born, they're made,
Rich
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Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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05 Jul 2016, 07:12
[quote="Bunuel"]The Official Guide For GMAT® Quantitative Review, 2ND Edition

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000 (B)$120,000
(C) $125,000 (D)$130,000
(E) $132,000 35000-10000=25000 25000=20% * x x=25000 / 20% = 125000 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 9088 Location: United States (CA) Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 16 Jul 2017, 17:46 1 Bunuel wrote: As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method? (A)$100,000
(B) $120,000 (C)$125,000
(D) $130,000 (E)$132,000

We can let total annual sales = x and create the following equation:

35,000 = 10,000 + 0.2x

25,000 = 0.2x

125,000 = x

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As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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24 Aug 2017, 01:34
Let X = Annual Sales

1. $10,000 + (.2 * X) =$35,000
2. .2x = $25,000 3. x =$125,000

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Joined: 12 Sep 2015
Posts: 4219
Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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08 Sep 2019, 06:31
Top Contributor
Bunuel wrote:
The Official Guide For GMAT® Quantitative Review, 2ND Edition

As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of$10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method?

(A) $100,000 (B)$120,000
(C) $125,000 (D)$130,000
(E) $132,000 For the first payment method, she receives$35,000

Payment = annual salary of $10,000 plus a 20 percent commission on her total annual sales Let x = Phyllis' annual sales So: her payment = 10,000 + (20% of x) Simplify: payment = 10,000 + 0.2x What must her total annual sales be to give her the same annual pay with either method? If the two amounts are EQUAL, we can write: 10,000 + 0.2x = 35,000 Subtract 10,000 from both sides to get: 0.2x = 25,000 Solve: x = 25,000/0.2 = = 250,000/2 = 125,000 Answer: C Cheers, Brent _________________ Test confidently with gmatprepnow.com SVP Joined: 03 Jun 2019 Posts: 1940 Location: India GMAT 1: 690 Q50 V34 As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 08 Sep 2019, 07:46 Bunuel wrote: The Official Guide For GMAT® Quantitative Review, 2ND Edition As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of$35,000 with no commission or an annual salary of $10,000 plus a 20 percent commission on her total annual sales. What must her total annual sales be to give her the same annual pay with either method? (A)$100,000
(B) $120,000 (C)$125,000
(D) $130,000 (E)$132,000

Problem Solving
Question: 127
Category: Algebra Applied problems
Page: 78
Difficulty: 600

GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition - Quantitative Questions Project

Each week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution.

We'll be glad if you participate in development of this project:
2. Please vote for the best solutions by pressing Kudos button;
3. Please vote for the questions themselves by pressing Kudos button;
4. Please share your views on difficulty level of the questions, so that we have most precise evaluation.

Thank you!

Given :
As a salesperson, Phyllis can choose one of two methods of annual payment: either an annual salary of $35,000 with no commission or an annual salary of$10,000 plus a 20 percent commission on her total annual sales.

Asked: What must her total annual sales be to give her the same annual pay with either method?

Let the annual sales required to give her the same annual pay with either method be x
35000 = 10000 + .2 x
x = 25000/.2 = \$125,000

IMO C
As a salesperson, Phyllis can choose one of two methods of a   [#permalink] 08 Sep 2019, 07:46
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