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

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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) Manager Joined: 05 Jul 2015 Posts: 53 Own Kudos [?]: 190 [0] Given Kudos: 3 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 annual paym [#permalink] Took me 45 seconds total. 35=10+(1/5)X 25*5 = 125 GMAT Club Legend Joined: 19 Dec 2014 Status:GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Posts: 21835 Own Kudos [?]: 11799 [0] Given Kudos: 450 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 annual paym [#permalink] Expert Reply 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,
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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 Target Test Prep Representative Joined: 14 Oct 2015 Status:Founder & CEO Affiliations: Target Test Prep Posts: 19199 Own Kudos [?]: 22718 [1] Given Kudos: 286 Location: United States (CA) Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink] 1 Kudos 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

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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

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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 GMAT Club Legend Joined: 03 Jun 2019 Posts: 5312 Own Kudos [?]: 4250 [1] Given Kudos: 161 Location: India GMAT 1: 690 Q50 V34 WE:Engineering (Transportation) Re: As a salesperson, Phyllis can choose one of two methods of annual paym [#permalink] 1 Kudos 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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