In a certain furniture store, each week Nancy earns a salary of $240 p

Question

In a certain furniture store, each week Nancy earns a salary of $240 plus 5% of the amount of her total sales that exceeds $800 for the week. If Nancy earned a total of $450 one week, what were her total sales that week ?

A. $2,200
B. $3,450
C. $4,200
D. $4,250
E. $5,000

A. $2,200
B. $3,450
C. $4,200
D. $4,250
E. $5,000

GMATinsight · Accepted Answer

450 = 240 + (5/100)*(Total Sales - 800)

i.e. (Total Sales - 800) = 20*(450-240) = 20*210 = 4200

i.e. Total Sales = 4200 + 800 = 5000

Answer: Option E

CharmiShah · Answer

Thank you for prompt reply but didnt get below highlighted step :

450 = 240 +  (5/100)*(Total Sales - 800)

GMATinsight · Answer

450 = 240 + 5% of Sales above $800

and  Sales above $800 = (Total Sales - 800)

E.g. if the totals sales = $1400 then sales above $800 = 1400-800 = $600

Now 5% of Sales above $800 = (5/100)*(Total Sales - 800)

Therefore,
 450 = 240 + (5/100)*(Total Sales - 800)

I hope it helps you!

chetan2u · Answer

another way would be..
240 is fixed 
she earns 450-240=210 above fixed amount..
now 210=5/100 of excess amount 
or excess=4200..
total =4200+800=5000
ans E

WillGetIt · Answer

Another Approach:

Total bonus: 450- 240 = 210

210 is equivalent to 5% of total sales over 800 so

(X - 800).005 = 210

Solve for x

X= 5000

Done

Posted from my mobile device

EMPOWERgmatRichC · Answer

Hi All,

You can solve this question algebraically or by TESTING the Answers. Here's how you can use the answers to your advantage…

Let's TEST answer D: $4250

IF Nancy sold $4250 in furniture, she'd get $240 + 5% of $3450….

240 + .05(3450) = 240 + 172.50 = $412.50

$412.50 is not enough money to match the $450 that she actually received, which means that answer D is TOO LOW. So we need an answer that gets her more money. There's only one answer that fits...

Final Answer:  E

GMAT assassins aren't born, they're made, 
Rich

kanak2016 · Answer

Hi Chetan2u- i understood everything except the highlighted one. please can you help me understand.

Hovkial · Answer

The original question is easy. There is a trap in this question that is not related to the difficulty of the question.

Since any amount of sales that Nancy achieves above $800 is subject to a 5% additional earnings for her, we simply use this known additional earnings to calculate her total sales last week.

Since $450 > $240, we know that Nancy's sales were above $800 last week.

Additional amount earned by Nancy = $450 - $240 = $210.

The amount of $210 represents 5% of an unknown quantity. So, we have

(5/100)*(unknown quantity in $) = 210
Unknown quantity = $4200

But the question does not ask for this amount.  It asks for the  total sales amount .

Since Nancy had  already  achieved $800 in sales, the amount of $4200 represents the  additional sales  she achieved. So the  total amount of sales is the sum of the two amounts $800 and $4200,  which is equal to $5,000.

ANSWER : E

Note:  There is a trap answer (B).

Abhishek009 · Answer

450-240/0.05 = 4200

Thus, Total sales is 4200 + 800 = 5000, Answer will be (E)

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In a certain furniture store, each week Nancy earns a salary of $240 p

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In a certain furniture store, each week Nancy earns a salary of $240 p

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