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Paul sells encyclopedias door-to-door. He earns $160 on ever

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Paul sells encyclopedias door-to-door. He earns $160 on ever  [#permalink]

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New post Updated on: 22 Jan 2014, 07:15
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A
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Difficulty:

  35% (medium)

Question Stats:

72% (02:15) correct 28% (02:22) wrong based on 103 sessions

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Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:

Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->

He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.

His largest paycheck of the year was $1,320. What were his sales for that pay period?

A)13,200
B)14,800
C)16,400
D)15,800
E)19,600

Originally posted by guerrero25 on 20 Jan 2014, 22:16.
Last edited by guerrero25 on 22 Jan 2014, 07:15, edited 1 time in total.
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Re: Paul sells encyclopedias door-to-door.  [#permalink]

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New post 20 Jan 2014, 23:00
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1
guerrero25 wrote:
Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:


Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->


He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.

His largest paycheck of the year was $1,320. What were his sales for that pay period?




A)13,200

B)14,800

C)16,400

D)15,800

E)19,600

I will post the OA soon


His pay check was $1320.
Out of this, $160 was his fixed salary so the total commission he earned was $1320 - $160 = $1160
He earns 10% on the sales of first $10,000 which gives a commission of $1000.
He earns 5% on every subsequent dollar. Since he earns another $160, he must have had sales of another 160*(100/5) = 3200
So his total sales must have been $10,000 + $3200 = $13,200
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Re: Paul sells encyclopedias door-to-door. He earns $160 on ever  [#permalink]

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New post 22 Jan 2014, 01:11
Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:
Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->
He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.
His largest paycheck of the year was $1,320. What were his sales for that pay period?


Using the equation y = mx + C, where, y = Paycheck amount; x= amount of sales exceeding $10000; m = 5% or 1/20; C = 160 + 10000(1/10) = 1160;

\(1320 = \frac{x}{20} + 1160\)

Or,\(x = (1320-1160)(20) = 3200\)

So, Total sales \(= 10000+3200=13200\)

Answer: (A)
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Paul sells encyclopedias door-to-door. He earns $160 on ever  [#permalink]

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New post 26 Aug 2018, 19:31
1
guerrero25 wrote:
Paul sells encyclopedias door-to-door. He earns $160 on every paycheck, regardless of how many sets he sells. In addition, he earns commission as follows:

Commission Sales
10% $0.00 - $10,000.00
5% $10,000.01 --->

He does not earn "double commission." That is, if his sales are $12,000, he earns 10% on the first $10,000 and 5% on the remaining $2,000.

His largest paycheck of the year was $1,320. What were his sales for that pay period?

A)13,200
B)14,800
C)16,400
D)15,800
E)19,600

Paycheck = fixed pay + commissions
\($1,320 = $160\) + commissions
\($(1,320 -160)=$1,160\) in commissions

All of the answer choices are greater than $10,000

\(x=\) first $10,000 in sales
\(y\) = sales amount after the first $10,000
\(x+y=\) total sales amount
\(.10x + .05y=\) total commissions amount

\(.10x+.05y=$1,160\)

\(.10($10,000)+.05(y)=$1,160\)
\($1,000+0.05y=$1,160\)
\(.05y=$160\)

\(y=\frac{$160}{.05}=\frac{$16,000}{5}=$3,200\)

Total sales = \((x+y)=$(10,000+3,200)=$13,200\)

Answer A
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Paul sells encyclopedias door-to-door. He earns $160 on ever &nbs [#permalink] 26 Aug 2018, 19:31
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