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John and Ed work for the same Sales Company. John receives a $600 basi

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John and Ed work for the same Sales Company. John receives a $600 basi [#permalink]

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John and Ed work for the same Sales Company. John receives a $600 basic salary plus 20 percent of any profit he realizes for the company in excess of $5,000, while Ed receives an $800 basic salary in addition to 40 percent of any profit he realizes for the company only if the total profit he realizes is greater than $8,000, otherwise he receives a flat salary of $1,000. For what amount of profit will both John and Ed earn the same amount?

A. $1,000
B. $1,200
C. $2,400
D. $6,000
E. $7,000
[Reveal] Spoiler: OA

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John and Ed work for the same Sales Company. John receives a $600 basi [#permalink]

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Bunuel wrote:
John and Ed work for the same Sales Company. John receives a $600 basic salary plus 20 percent of any profit he realizes for the company in excess of $5,000, while Ed receives an $800 basic salary in addition to 40 percent of any profit he realizes for the company only if the total profit he realizes is greater than $8,000, otherwise he receives a flat salary of $1,000. For what amount of profit will both John and Ed earn the same amount?

A. $1,000
B. $1,200
C. $2,400
D. $6,000
E. $7,000


John's salary is 600$ + 20% of the profit of sales > $5000
Ed's salary is 800$ + 40% of the profit of sales > $8000(Else, he receives a flat salary of $1000)

Since the basic salary of John is 600$ and he receives 20% over 5000$ in profit,
in order to make the earnings equal, \(0.2*(x-5000) + 600 = 1000\)
The reason Ed's earning will not be greater than the flat rate of $1000 is
because Ed earns 40% of the sales, where as John earns only 20% of the sales


\(.2*(x-5000) = 400 => x-5000 = 2000 => x =\) 7000(Option E)
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Re: John and Ed work for the same Sales Company. John receives a $600 basi [#permalink]

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New post 09 Jan 2018, 20:18
Based on the problem stmt:
J = 600 + 20%(P-5000) where P is the profit, and J is the salary recieved by John

E = 800 + 40% of P (if P >8000)
else E=1000

lets see if for any value of P we can have J = E .. on solving we get P=7000
Re: John and Ed work for the same Sales Company. John receives a $600 basi   [#permalink] 09 Jan 2018, 20:18
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John and Ed work for the same Sales Company. John receives a $600 basi

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