It is currently 20 Nov 2017, 19:58

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Mike, Tom, and Walt are working as sales agents for an insurance compa

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
TAGS:

### Hide Tags

Retired Moderator
Joined: 18 Jul 2008
Posts: 960

Kudos [?]: 303 [0], given: 5

Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

14 Nov 2008, 15:41
10
This post was
BOOKMARKED
00:00

Difficulty:

45% (medium)

Question Stats:

68% (01:37) correct 32% (02:14) wrong based on 320 sessions

### HideShow timer Statistics

Mike, Tom, and Walt are working as sales agents for an insurance company. Previous month relationship between their commissions was $$\frac{MT}{6}=W$$, where $$M$$, $$T$$, and $$W$$ are the commissions received by Mike, Tom, and Walt respectively. If this month, Mike's commission is 60% more than previous month and Tom's commission is 50% less than previous month, then how much should Walt's commission change compared to the previous month to ensure that the relationship between their commissions remains the same?

A. Decrease by 12.5%
B. Decrease by 20%
C. Decrease by 22.5%
D. Increase by 12.5%
E. Increase by 15%

M06-36
[Reveal] Spoiler: OA

Kudos [?]: 303 [0], given: 5

Manager
Joined: 23 Jul 2008
Posts: 193

Kudos [?]: 134 [1], given: 0

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

14 Nov 2008, 15:44
1
KUDOS
1.6M X 0.5 T = 0.8MT=0.8 W/6 ==> hence W shud decrease sales by 20% so that the relation remains intact

Kudos [?]: 134 [1], given: 0

Senior Manager
Status: Do and Die!!
Joined: 15 Sep 2010
Posts: 312

Kudos [?]: 602 [0], given: 193

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

26 Sep 2011, 05:05
Mike, Tom, and Walt are working as sales agents for an insurance company, and the commissions they receive can be expressed by the following formula: MT=W/6 . If Mike sells 60% more this month and Tom decreases his sales by 50%, how should Walt's performance change to ensure that the above relationship is true ?
_________________

I'm the Dumbest of All !!

Kudos [?]: 602 [0], given: 193

Manager
Joined: 12 May 2011
Posts: 98

Kudos [?]: 16 [0], given: 4

Location: United States
Concentration: Finance, Marketing
GMAT 1: 730 Q47 V44
Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

27 Sep 2011, 08:42
I believe this is the same question that has already been answered. But here's my take:

MT = W/6 => 6MT = W (1)

1.6M * 0.5T = Wx/6
0.8MT = Wx/6
4.8MT = Wx (2)

Comparing (1) and (2):

(1) 6MT = W
(2) 4.8MT = Wx

Since 4.8 is 4/5 of 6, x would need to be 4/5 for the equation to hold. Therefore, W needs to decrease by 20%, or answer choice B, for the equation to remain intact.

Kudos [?]: 16 [0], given: 4

Intern
Joined: 27 Jan 2011
Posts: 4

Kudos [?]: [0], given: 0

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

27 Sep 2011, 12:32

Kudos [?]: [0], given: 0

Intern
Joined: 10 Mar 2013
Posts: 14

Kudos [?]: 8 [0], given: 78

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

07 Dec 2014, 20:08
It is given that: MT = W/6....eq(1)

Now, M 's sales increased by 60 percent, whereas that of T decreased by 50 %.

Thus, Mnew= 1.6M, and Tnew = 0.5T. So, now lets assume that we increase or decrease W by X%. As the equation is still valid, we can represent it as:

1.6M * 0.5T = [ W (1 + X/100) ] / 6 ....where X is the percent increase or decrease

We can further simplify this as,
0.8MT = [W (1 + X/100) ] / 6 ]
From eq 1, however, W = 6MT
So,
0.8MT = [W (1 + X/100) ] / 6 ] => 0.8MT = [6MT (1+ X/100)] / 6
Further simplifying,

0.8MT/6MT * 6 = (1 + X/100) => (1 + X/100) = 0.8 => X/100 = -0.2 => X = -20 => Answer Choice B

Thus, we need to reduce W by 20% in order to maintain the equation. I have listed all the steps to clarify, otherwise the problem could be solved much faster.

Kudos [?]: 8 [0], given: 78

Math Expert
Joined: 02 Sep 2009
Posts: 42269

Kudos [?]: 132851 [2], given: 12378

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

08 Dec 2014, 04:05
2
KUDOS
Expert's post
2
This post was
BOOKMARKED
Mike, Tom, and Walt are working as sales agents for an insurance company. Previous month relationship between their commissions was $$\frac{MT}{6}=W$$, where $$M$$, $$T$$, and $$W$$ are the commissions received by Mike, Tom, and Walt respectively. If this month, Mike's commission is 60% more than previous month and Tom's commission is 50% less than previous month, then how much should Walt's commission change compared to the previous month to ensure that the relationship between their commissions remains the same?

A. Decrease by 12.5%
B. Decrease by 20%
C. Decrease by 22.5%
D. Increase by 12.5%
E. Increase by 15%

M06-36

Previous month $$\frac{MT}{6}=W$$;

This month $$1.6M*0.5T=0.8MT$$. So, $$MT$$ is decreased by 20% so $$W$$ should also decrease by the same percent for the relationship to remain the same.

_________________

Kudos [?]: 132851 [2], given: 12378

Manager
Joined: 13 Dec 2013
Posts: 53

Kudos [?]: 7 [0], given: 21

GPA: 2.71
Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

11 Dec 2014, 03:26
Bunuel wrote:
Mike, Tom, and Walt are working as sales agents for an insurance company. Previous month relationship between their commissions was $$\frac{MT}{6}=W$$, where $$M$$, $$T$$, and $$W$$ are the commissions received by Mike, Tom, and Walt respectively. If this month, Mike's commission is 60% more than previous month and Tom's commission is 50% less than previous month, then how much should Walt's commission change compared to the previous month to ensure that the relationship between their commissions remains the same?

A. Decrease by 12.5%
B. Decrease by 20%
C. Decrease by 22.5%
D. Increase by 12.5%
E. Increase by 15%

M06-36

Previous month $$\frac{MT}{6}=W$$;

This month $$1.6M*0.5T=0.8MT$$. So, $$MT$$ is decreased by 20% so $$W$$ should also decrease by the same percent for the relationship to remain the same.

Lost
shouldnt any change in MT be 6 times that of W?

$$MT/6=W$$

$$0.8MT=6W$$

Kudos [?]: 7 [0], given: 21

SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1851

Kudos [?]: 2716 [1], given: 193

Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)
Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

12 Dec 2014, 00:45
1
KUDOS
Simplifying the condition:

mt = 6w

6 is a constant; for the sake of the required calculation, it can be ignored.

mt = w ............... (1)

60% increase in m, 50% decrease in t

$$\frac{160}{100} m * \frac{50}{100} t = w$$

$$mt = \frac{100}{80} w$$ .................. (2)

By comparing (1) & (2), increase in$$w = \frac{100}{80} - 1 = \frac{20}{80}$$

Required decrease = 20%

_________________

Kindly press "+1 Kudos" to appreciate

Kudos [?]: 2716 [1], given: 193

Non-Human User
Joined: 09 Sep 2013
Posts: 15614

Kudos [?]: 283 [0], given: 0

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

03 Feb 2016, 11:42
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.
_________________

Kudos [?]: 283 [0], given: 0

Non-Human User
Joined: 09 Sep 2013
Posts: 15614

Kudos [?]: 283 [0], given: 0

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa [#permalink]

### Show Tags

21 Apr 2017, 04:26
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.
_________________

Kudos [?]: 283 [0], given: 0

Re: Mike, Tom, and Walt are working as sales agents for an insurance compa   [#permalink] 21 Apr 2017, 04:26
Display posts from previous: Sort by

# Mike, Tom, and Walt are working as sales agents for an insurance compa

 new topic post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.