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### Show Tags

Updated on: 22 Jan 2014, 06:15
3
00:00

Difficulty:

45% (medium)

Question Stats:

72% (01:55) correct 28% (01:51) wrong based on 128 sessions

### HideShow timer Statistics

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, 21:16.
Last edited by guerrero25 on 22 Jan 2014, 06:15, edited 1 time in total.
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Joined: 16 Oct 2010
Posts: 8574
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Re: Paul sells encyclopedias door-to-door.  [#permalink]

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20 Jan 2014, 22:00
1
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 _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > GMAT self-study has never been more personalized or more fun. Try ORION Free! Manager Joined: 04 Oct 2013 Posts: 152 Location: India GMAT Date: 05-23-2015 GPA: 3.45 Re: Paul sells encyclopedias door-to-door. He earns$160 on ever  [#permalink]

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22 Jan 2014, 00:11
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) Senior SC Moderator Joined: 22 May 2016 Posts: 2117 Paul sells encyclopedias door-to-door. He earns$160 on ever  [#permalink]

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26 Aug 2018, 18:31
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 Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 4170 Location: United States (CA) Re: Paul sells encyclopedias door-to-door. He earns$160 on ever  [#permalink]

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12 Nov 2018, 07:22
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

Since he earns $160 as base salary and 10% of$10,000 is $1,000, if he sells no more than$10,000 worth of encyclopedias, the maximum he earns is $1,160. However, since he earns$1,320, he must have sold more than $10,000 worth of encyclopedias. Therefore, if we let x = his sales for the paycheck of$1,320, we can create the equation:

160 + 0.1(10,000) + 0.05(x - 10,000) = 1,320

160 + 1,000 + 0.05x - 500 = 1,320

660 + 0.05x = 1,320

0.05x = 660

x = 13,200

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Re: Paul sells encyclopedias door-to-door. He earns $160 on ever [#permalink] ### Show Tags 13 Nov 2018, 11:15 Hi All, We're told that Paul sells encyclopedias door-to-door. He earns$160 on every paycheck, regardless of how many sets he sells and a commission as follows:

10% on the first $10,000.00 and 5% for any additional sales beyond that. His largest paycheck of the year was$1,320. We're asked for his sales for that pay period. This question can be approached in a couple of different ways. Based on the given answer choices, we can take advantage of a couple of built-in patterns and avoid some of the extra 'math steps.'

To start, we can see that all of the answers are ABOVE $10,000, so we know that part of his commissions was 10% of$10,000 = $1,000. Paul received$160 on top of that piece of his commission, so we have accounted for $1,160. Now, we just have to account for the extra$1320 - $1160 =$160 he earned...

That extra commission was based on 5% of the sales ABOVE $10,000. 5% of$1,000 = $50$160 is a little more than (3)($50), so the extra sales had to be a little more than (3)($1000). Thus, his total sales for that period were a LITTLE MORE than $10,000 +$3000 = $13,000... Final Answer: GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
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