Author 
Message 
TAGS:

Hide Tags

Manager
Joined: 14 Jan 2013
Posts: 151
Concentration: Strategy, Technology
GMAT Date: 08012013
GPA: 3.7
WE: Consulting (Consulting)

Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
08 Apr 2014, 15:47
3
This post received KUDOS
9
This post was BOOKMARKED
Question Stats:
59% (01:02) correct 41% (00:48) wrong based on 444 sessions
HideShow timer Statistics
Did Jeff record more sales revenue this month than Dan did? (1) Jeff earned 20% more in sales commission this month than Dan did. (2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his.
Official Answer and Stats are available only to registered users. Register/ Login.
_________________
"Where are my Kudos" ............ Good Question = kudos
"Start enjoying all phases" & all Sections
__________________________________________________________________ http://gmatclub.com/forum/collectionofarticlesoncriticalreasoning159959.html
http://gmatclub.com/forum/percentages700800levelquestions130588.html
http://gmatclub.com/forum/700to800levelquantquestionwithdetailsoluition143321.html



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7934
Location: Pune, India

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
08 Apr 2014, 22:24
2
This post received KUDOS
Expert's post
5
This post was BOOKMARKED
Mountain14 wrote: Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. Based on revenue, salespeople earn commission. We need to know whether Jeff recorded more revenue than Dan. (1) Jeff earned 20% more in sales commission this month than Dan did. Jeff's more commission doesn't imply more revenue, Their rate of commission could be different (as given in stmnt 2) due to their different profile, the products they sell could offer varying commissions etc (2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. This alone is not sufficient since we don't know who got more commission in absolute terms. Using both, we know that Dan earns 6% and Jeff earns 8%. This means for every $100 of revenue, Dan gets $6 and Jeff gets $8 so Jeff gets (2/6)*100 = 33.33% more than Dan for same revenue. Had their revenue been same, Jeff would have earned 33.33% more than Dan in commission. Since Jeff earned only 20% more in commission, his revenue must have been less than that of Dan. Both statements together are sufficient. Answer (C)
_________________
Karishma Veritas Prep  GMAT Instructor My Blog
Get started with Veritas Prep GMAT On Demand for $199
Veritas Prep Reviews



NonHuman User
Joined: 09 Sep 2013
Posts: 13827

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
27 Aug 2015, 07:03
Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up  doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Books  GMAT Club Tests  Best Prices on GMAT Courses  GMAT Mobile App  Math Resources  Verbal Resources



Intern
Joined: 13 Nov 2014
Posts: 49
GMAT 1: 590 Q42 V29 GMAT 2: 630 Q47 V29

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
27 Aug 2015, 18:36
VeritasPrepKarishma wrote: Mountain14 wrote: Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. Based on revenue, salespeople earn commission. We need to know whether Jeff recorded more revenue than Dan. (1) Jeff earned 20% more in sales commission this month than Dan did. Jeff's more commission doesn't imply more revenue, Their rate of commission could be different (as given in stmnt 2) due to their different profile, the products they sell could offer varying commissions etc (2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. This alone is not sufficient since we don't know who got more commission in absolute terms. Using both, we know that Dan earns 6% and Jeff earns 8%. This means for every $100 of revenue, Dan gets $6 and Jeff gets $8 so Jeff gets (2/6)*100 = 33.33% more than Dan for same revenue. Had their revenue been same, Jeff would have earned 33.33% more than Dan in commission. Since Jeff earned only 20% more in commission, his revenue must have been less than that of Dan. Both statements together are sufficient. Answer (C) I am not able to understand the reasoning, Why are we assuming that both of them are getting percentage on same amount, It's commission so one's sale could be 10000$ while other's sale could be 10$ so how can the percentage give me the correct answer?
_________________
 Consider Cudos if you like this post. 



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7934
Location: Pune, India

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
27 Aug 2015, 20:25
dav90 wrote: VeritasPrepKarishma wrote: Mountain14 wrote: Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. Based on revenue, salespeople earn commission. We need to know whether Jeff recorded more revenue than Dan. (1) Jeff earned 20% more in sales commission this month than Dan did. Jeff's more commission doesn't imply more revenue, Their rate of commission could be different (as given in stmnt 2) due to their different profile, the products they sell could offer varying commissions etc (2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. This alone is not sufficient since we don't know who got more commission in absolute terms. Using both, we know that Dan earns 6% and Jeff earns 8%. This means for every $100 of revenue, Dan gets $6 and Jeff gets $8 so Jeff gets (2/6)*100 = 33.33% more than Dan for same revenue. Had their revenue been same, Jeff would have earned 33.33% more than Dan in commission. Since Jeff earned only 20% more in commission, his revenue must have been less than that of Dan. Both statements together are sufficient. Answer (C) I am not able to understand the reasoning, Why are we assuming that both of them are getting percentage on same amount, It's commission so one's sale could be 10000$ while other's sale could be 10$ so how can the percentage give me the correct answer? We are not assuming that their revenue is the same. What we are saying is that if the revenue were the same, Jeff would have earned 33.33% more than Dan in commission. If Jeff's revenue were higher than Dan's, then Jeff would have earned more than 33.33% more than Dan, say 40% more commission than Dan or 50% more than Dan etc. If Jeff's revenue were lower than Dan's, then Jeff would have earned less than 33.33% more than Dan, that is Jeff would have earned 30% more commission than Dan, or 20% more commission than Dan etc. Try some numbers to understand this better. Since we are given that Jeff's commission is only 20% more than Dan's commission, it means Jeff's revenue must be lower than Dan's revenue.
_________________
Karishma Veritas Prep  GMAT Instructor My Blog
Get started with Veritas Prep GMAT On Demand for $199
Veritas Prep Reviews



Veritas Prep GMAT Instructor
Joined: 16 Oct 2010
Posts: 7934
Location: Pune, India

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
12 Jun 2016, 20:28
VeritasPrepKarishma wrote: Mountain14 wrote: Did Jeff record more sales revenue this month than Dan did?
(1) Jeff earned 20% more in sales commission this month than Dan did.
(2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. Based on revenue, salespeople earn commission. We need to know whether Jeff recorded more revenue than Dan. (1) Jeff earned 20% more in sales commission this month than Dan did. Jeff's more commission doesn't imply more revenue, Their rate of commission could be different (as given in stmnt 2) due to their different profile, the products they sell could offer varying commissions etc (2) Dan earns 6% commission on his sales, and Jeff earns 8% commission on his. This alone is not sufficient since we don't know who got more commission in absolute terms. Using both, we know that Dan earns 6% and Jeff earns 8%. This means for every $100 of revenue, Dan gets $6 and Jeff gets $8 so Jeff gets (2/6)*100 = 33.33% more than Dan for same revenue. Had their revenue been same, Jeff would have earned 33.33% more than Dan in commission. Since Jeff earned only 20% more in commission, his revenue must have been less than that of Dan. Both statements together are sufficient. Answer (C) Responding to a pm: Quote: Could u please tell me that how u got this: (2/6)*100 = 33.33% more
On $100, Dan earns $6 and Jeff earns $8. So for every $100, Jeff earns $2 more than Dan. So for every $100, Jeff earns (2/6)*100 = 33.33% more than Dan. 2 is Jeff's extra earning and 6 is Dan's earning.
_________________
Karishma Veritas Prep  GMAT Instructor My Blog
Get started with Veritas Prep GMAT On Demand for $199
Veritas Prep Reviews



Manager
Joined: 17 Aug 2015
Posts: 105

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
16 Aug 2016, 21:38
statement #1  says Jeff's sales comission is more than Dan's. But it is possible that this could be due to comission rate. Even if Dan's sales commission is higher he could still make less comission. Another case is when their sales comission rate is same in that case Jeff's sales will have to be higher. NS
statement #2  sales commission rate of Dan is higher. But we dont know what is Dan's total comission relative to Jeff's.
combining the statements. If Dan's commission rate is higher but he still makes less total commission, this implies his sales has to be lower to make this happen. I have solved it via intuition and reasoning, but we can apply algebra inequality as well
Sj  sales of Jeff Sd sales of Dan Rj  Jeff's commission rate Rd Dan's commission rate
combine statements statement #1 Sj*Rj> Sd*Rd cross multiply ..since we know everything is positive so Sj/Sd> Rd/Rj. statement #2.now since Rd > Rj this implies Sj/Sd >1 => Sj>Sdsufficient Note that If instead it was given that commission rate of Dan is less than commission rate of Jeff, that would still have been insufficient and answer would have been E. Why? Rd<Rj=> Rd/Rj <1. If Sj/Sd> Rd/Rj  this does not imply Sj/Sd is either greater or less than or equal to 1. Anything can happen.



Manager
Joined: 14 Oct 2012
Posts: 179

Re: Did Jeff record more sales revenue this month than Dan did? [#permalink]
Show Tags
16 Feb 2017, 20:21
2
This post received KUDOS
My 2 cents: NOTE: Commission = (x%)*Revenues; Sales Commission = (x%)*(Sales Revenues). Therefore, C = (x%)*R Question: Jr > Dr? 1) Jc = 1.2*Dc 2) Jc = 0.08*Jr & Dc = 0.06Dr 1+2) Jc = 1.2*Dc => 0.08*Jr = 1.2*0.06*Dr => 8*Jr = 1.2*6*Dr => Jr = (7.2/8)*Dr  72/80 = 9/10 = 0.9 => Jr = 0.9*Dr => Jr < Dr  Answer C




Re: Did Jeff record more sales revenue this month than Dan did?
[#permalink]
16 Feb 2017, 20:21






