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

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Math Expert
Joined: 02 Sep 2009
Posts: 53066
Every month an insurance agent is paid a fixed salary of \$500 and a co  [#permalink]

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10 Oct 2018, 03:52
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Difficulty:

45% (medium)

Question Stats:

69% (01:38) correct 31% (01:06) wrong based on 40 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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10 Oct 2018, 04:07
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

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, 04:07
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