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

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14 Nov 2008, 15:41

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Question Stats:

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

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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%

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

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

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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.

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

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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,

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.

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.

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

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11 Dec 2014, 03:26

Bunuel wrote:

bigfernhead 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.

Answer: B.

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

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

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03 Feb 2016, 11:42

Hello from the GMAT Club BumpBot!

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

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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.
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