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

Answer is (C)
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Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink]
Took me 45 seconds total.

35=10+(1/5)X
25*5 = 125
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Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink]
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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.

Let's TEST Answer B...

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...

Let's TEST Answer C...

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.

Final 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 annual paym [#permalink]
[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 annual paym [#permalink]
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Expert Reply
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
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Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink]
Let X = Annual Sales

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

Answer (C)
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Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink]
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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
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Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink]
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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


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