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Every month an insurance agent is paid a fixed salary of $500 and a co

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Every month an insurance agent is paid a fixed salary of $500 and a co  [#permalink]

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New post 10 Oct 2018, 04:52
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A
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D
E

Difficulty:

  45% (medium)

Question Stats:

67% (01:36) correct 33% (01:14) wrong based on 54 sessions

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Every month an insurance agent is paid a fixed salary of $500 and a commission equal to 10 percent of the amount of total sales that month over $2,000. What was the total amount paid to the insurance agent last month?


(1) The total amount the insurance agent was paid last month is equal to 20 percent of the amount of total sales last month.
(2) The insurance agent’s total sales last month was $5,000.

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Every month an insurance agent is paid a fixed salary of $500 and a co  [#permalink]

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New post 10 Oct 2018, 05:07
Bunuel wrote:
Every month an insurance agent is paid a fixed salary of $500 and a commission equal to 10 percent of the amount of total sales that month over $2,000. What was the total amount paid to the insurance agent last month?


(1) The total amount the insurance agent was paid last month is equal to 20 percent of the amount of total sales last month.
(2) The insurance agent’s total sales last month was $5,000.


Pay = 500+0.1*(S-2000) if Sales i.e. S > 2000

Question: Agent's Payment = ?
But since the variable pay depends on agent's total sales over 2000 hence

Question REPHRASED: Total Sales of last month = ?

Statement 1: The total amount the insurance agent was paid last month is equal to 20 percent of the amount of total sales last month.

0.2*S = 500+0.1*(S-2000) if Sales i.e. S > 2000
i.e. S = 3000
SUFFICIENT

Statement 2: The insurance agent’s total sales last month was $5,000
SUFFICIENT

Answer: Option D

Bunuel Since the statement 1 and 2 are contradicting therefore I feel there is some type error here and total sales of last month should be $3,000 in second statement
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Every month an insurance agent is paid a fixed salary of $500 and a co   [#permalink] 10 Oct 2018, 05:07
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