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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: 50608
As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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05 Mar 2014, 01:06
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Difficulty:

5% (low)

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94% (01:07) correct 6% (01:45) wrong based on 679 sessions

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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: 50608 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 05 Mar 2014, 01:06 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, 19:48
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Answer = (C) $125,000 35000 = 10000 + 25000 We require to calculate sales which creates a commission of 25000 @ 20% = $$25000* \frac{100}{20}= 125000$$ _________________ Kindly press "+1 Kudos" to appreciate 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, 20:15 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, 21:58 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: 50608
Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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08 Mar 2014, 11:14
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: 101 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, 09:39 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: 12857 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, 14:51 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.

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# Rich Cohen

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Special Offer: Save $75 + GMAT Club Tests Free Official GMAT Exam Packs + 70 Pt. Improvement Guarantee www.empowergmat.com/ *****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!***** Intern Joined: 20 Oct 2015 Posts: 37 Re: As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 05 Jul 2016, 06:12 [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
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Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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16 Jul 2017, 16:46
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 Answer: C _________________ Scott Woodbury-Stewart Founder and CEO GMAT Quant Self-Study Course 500+ lessons 3000+ practice problems 800+ HD solutions Manager Joined: 21 Jun 2017 Posts: 84 As a salesperson, Phyllis can choose one of two methods of a [#permalink] ### Show Tags 24 Aug 2017, 00:34 Let X = Annual Sales 1.$10,000 + (.2 * X) = $35,000 2. .2x =$25,000
3. x = \$125,000

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Posts: 8774
Re: As a salesperson, Phyllis can choose one of two methods of a  [#permalink]

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17 Sep 2018, 13:09
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Re: As a salesperson, Phyllis can choose one of two methods of a &nbs [#permalink] 17 Sep 2018, 13:09
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