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    Strategies and techniques for approaching featured GMAT topics

At Funston Stores, a salesperson's salary is comprised solely of

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At Funston Stores, a salesperson's salary is comprised solely of  [#permalink]

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New post 29 Sep 2015, 05:51
1
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A
B
C
D
E

Difficulty:

  5% (low)

Question Stats:

88% (01:28) correct 12% (01:38) wrong based on 119 sessions

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At Funston Stores, a salesperson's salary is comprised solely of commissions from sales. A particular salesperson's annual salary was lower in 2009 than in 2008. In both years, all of this salesperson's sales were of only one item, product X, and he made the same number of product X sales in both years. The commission percentage for all Funston salespeople has remained unchanged over the past ten years.

The information above most strongly supports which of the following?

A) Through all of Funston Stores, the overall number of sales of product X declined from 2008 to 2009
B) This salesperson would have earned a higher salary if her sales were in more than one product.
C) The commission percentage that Funston store salespeople earn is lower compared to the percentage of salespeople at similar stores.
D) The price of product X dropped from 2008 to 2009.
E) The overall profits of Funston stores were lower in 2009 than it was in 2008.

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Re: At Funston Stores, a salesperson's salary is comprised solely of  [#permalink]

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New post 29 Sep 2015, 06:56
At Funston Stores, a salesperson's salary is comprised solely of commissions from sales.
A particular salesperson's annual salary was lower in 2009 than in 2008.
In both years, all of this salesperson's sales were of only one item, product X, and
he made the same number of product X sales in both years.
The commission percentage for all Funston salespeople has remained unchanged over the past ten years.

The information above most strongly supports which of the following?

A) Through all of Funston Stores, the overall number of sales of product X declined from 2008 to 2009
(Negates the premise. We are told that sales are same for both years.)
B) This salesperson would have earned a higher salary if her sales were in more than one product.
(This can be true but we cannot consider the case of more than one product X. OFS)
C) The commission percentage that Funston store salespeople earn is lower compared to the percentage of salespeople at similar stores.
(similar store sales people are not important here. OFS)
D) The price of product X dropped from 2008 to 2009.
(May be commission rate depends on price of X and even if sales are same the commission reduces.)
E) The overall profits of Funston stores were lower in 2009 than it was in 2008.
(profits of stores cannot be inferred as we have the info of only sales number here. OFS)
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Re: At Funston Stores, a salesperson's salary is comprised solely of  [#permalink]

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New post 29 Sep 2015, 07:14
Harley1980 wrote:
At Funston Stores, a salesperson's salary is comprised solely of commissions from sales. A particular salesperson's annual salary was lower in 2009 than in 2008. In both years, all of this salesperson's sales were of only one item, product X, and he made the same number of product X sales in both years. The commission percentage for all Funston salespeople has remained unchanged over the past ten years.

The information above most strongly supports which of the following?

A) Through all of Funston Stores, the overall number of sales of product X declined from 2008 to 2009
B) This salesperson would have earned a higher salary if her sales were in more than one product.
C) The commission percentage that Funston store salespeople earn is lower compared to the percentage of salespeople at similar stores.
D) The price of product X dropped from 2008 to 2009.
E) The overall profits of Funston stores were lower in 2009 than it was in 2008.



An easy one. Option D is the clear winner.

The passage clearly states that the number of products sold by the sales person is the same for both years. Option A gives us sales information about
the store, irrelevant.

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Re: At Funston Stores, a salesperson's salary is comprised solely of  [#permalink]

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New post 09 Aug 2018, 18:22

Official Explanation


The credited answer is (D). The question, quite specifically, is about one salesperson --- call that person Q. We know that Q sold only product X last year and this year, and sold the same number in both years. We know that Q's salary is solely based on commission from sales, and the commission scheme did not change. The only way Q's salary could be lower is if the price of product X were lower.

It may be that total sales of Product X declined, but Q sold the same number both years. Choice (A) is irrelevant, so it is incorrect.

We don't know anything about the price of other products, or about the sales of other products. It may be that Q would have made more money selling other products instead of Product X, or it may be that selling Product X was the most lucrative route for Q. We don't know. Choice (B) is incorrect.

What the commission percentage is at other stores has nothing to do what happened to Q's salary. Choice (C) is irrelevant, so it is incorrect.

The overall profits of the store may be lower, but Q made the same number of sales in both years, so what happened at the store level does not explain what happened specifically to Q's salary. Choice (E) is incorrect.
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Re: At Funston Stores, a salesperson's salary is comprised solely of &nbs [#permalink] 09 Aug 2018, 18:22
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