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# Salesperson A's compensation for any week is \$360 plus 6

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Intern
Joined: 18 Jun 2006
Posts: 18
Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 03:22
2
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Difficulty:

35% (medium)

Question Stats:

73% (01:35) correct 27% (01:45) wrong based on 378 sessions

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Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?

A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

Here is the question and answer but they just don't make sense to me. The way I read it the answer they give is wrong, but I can't find any verification of this on the web. The problem is the explanation relies on the percentages of total sales but the question mentions the percentage is only on A's individual sales and B's individual sales. Therefore x would not be the same for each as it is in the explanation. I didn't check all answers but D works if Salesperson B made all the sales and Salesperson A none.

PLEASE SOMEONE HELP HE THIS IS DRIVING ME CRAZY! THE OG IS NOT SUPPOSED TO MAKE ANY MISTAKES, ESPECIALLY IF MY GMAT SCORE COUNTS ON THE SAME PEOPLE.

Reason given in book:

Let x represent the total weekly sales amount at which both salespersons earn the same compensation. Then, the given information regarding when Salesperson A's weekly pay equals Salesperson B's weekly pay can be expressed as:

360 / 0.06 (x-1,000) = 0.08 x
x = 15,000

OPEN DISCUSSION OF THIS QUESTION IS HERE: salesperson-a-s-compensation-for-any-week-is-360-plus-6-per-167917.html
VP
Joined: 15 Jun 2006
Posts: 1123
Schools: Chicago Booth
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 04:46
jbsears wrote:
Here is the question and answer but they just don't make sense to me. The way I read it the answer they give is wrong, but I can't find any verification of this on the web. The problem is the explanation relies on the percentages of total sales but the question mentions the percentage is only on A's individual sales and B's individual sales. Therefore x would not be the same for each as it is in the explanation. I didn't check all answers but D works if Salesperson B made all the sales and Salesperson A none.

PLEASE SOMEONE HELP HE THIS IS DRIVING ME CRAZY! THE OG IS NOT SUPPOSED TO MAKE ANY MISTAKES, ESPECIALLY IF MY GMAT SCORE COUNTS ON THE SAME PEOPLE.

114. Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?

A) \$21,000
B) \$18,000
C) \$15,000 * Answer given in the book is C
D) \$ 4,500
E) \$4,000

Reason given in book:

Let x represent the total weekly sales amount at which both salespersons earn the same compensation. Then, the given information regarding when Salesperson A's weekly pay equals Salesperson B's weekly pay can be expressed as:

360 / 0.06 (x-1,000) = 0.08 x
x = 15,000

The explanation makes perfect sence. It relies not on the volume of total sales, but on the volumes of sales for each of the salespersons. Let X be the volume of sales. And from the question it follows that both A and B sell X.

We should just express teh income of A and B via X.
For A it is 306+0.06(x-1000)
For B it is 0.08x
Intern
Joined: 18 Jun 2006
Posts: 18
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 05:36
But the question asks what is the total sales and would therefore be 30,000. since it is 15,000 per sales person. So it would still be wrong if thought of that way.
VP
Joined: 02 Jun 2006
Posts: 1222
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 05:37
360 + 0.06 (x-1000) = 0.08x
or 360 -60 = 0.08x
or 300/0.02 = x
or 15000 =x

Intern
Joined: 18 Jun 2006
Posts: 18
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 05:39
15,000 would be right if each sold 15,000 but there is no answer responding to this since it asks for total and that would be 15000 times 2 or 30,000.
VP
Joined: 15 Jun 2006
Posts: 1123
Schools: Chicago Booth
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 05:43
jbsears wrote:
15,000 would be right if each sold 15,000 but there is no answer responding to this since it asks for total and that would be 15000 times 2 or 30,000.

i agree, the wording is a bit confusing
still, GMAT is GMAT so 15000 is the only answer that makes sense
Intern
Joined: 18 Jun 2006
Posts: 18
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Jun 2006, 05:45
1
I beg to differ. 4,500 makes sense too. if B sold 4,500 and A sold 0 then a would get salary of 360 and b would get salary of 360. good answer for me.
Intern
Joined: 07 May 2011
Posts: 31
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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16 Apr 2012, 19:27
1
I agree, OP. This question just got me stuck for half an hour. It clearly says "portion of A's total sales" and "B's total sales". How else is one to interpret "portion" and individualized mention of total sales. Granted the problem is hard to solve unless it is to be understood as explained, the equation set forth in the explanation and described elsewhere on the gmat problem solving videos simply doesn't fit the description. The question is not about should we just accept GMAT's explanation and run with it because they decide what's right and wrong, but the question is also one of principle. If a valid understanding of a given problem is actually faulty in GMAT's view, how can I be confident about my interpretation of any other problem. If the GMAT wanted to make this problem difficult, there are a lot of other ways to do so and ambiguous wording is not one of them.
Manager
Joined: 01 Jan 2013
Posts: 51
Location: India
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Sep 2013, 21:11
jbsears wrote:
Here is the question and answer but they just don't make sense to me. The way I read it the answer they give is wrong, but I can't find any verification of this on the web. The problem is the explanation relies on the percentages of total sales but the question mentions the percentage is only on A's individual sales and B's individual sales. Therefore x would not be the same for each as it is in the explanation. I didn't check all answers but D works if Salesperson B made all the sales and Salesperson A none.

PLEASE SOMEONE HELP HE THIS IS DRIVING ME CRAZY! THE OG IS NOT SUPPOSED TO MAKE ANY MISTAKES, ESPECIALLY IF MY GMAT SCORE COUNTS ON THE SAME PEOPLE.

114. Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?

A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

Reason given in book:

Let x represent the total weekly sales amount at which both salespersons earn the same compensation. Then, the given information regarding when Salesperson A's weekly pay equals Salesperson B's weekly pay can be expressed as:

360 / 0.06 (x-1,000) = 0.08 x
x = 15,000

We have to make Compensation same for Sales Man A and B
Compensation depends on total sales and we dont know total sales.
Therefore,
Let X be total sales for both person for that week
Compensation of A = 8% of total sales = 0.08 of X

Compensation of B = 360 +0.06 (x - 1000)

Comp A = Comp B
0.08x = 360 + 0.06(x -1000)
0.08x = 360 + 0.06x - 60
0.02x = 300
0.01x = 150
x=15000
Manager
Joined: 29 Aug 2013
Posts: 74
Location: United States
GMAT 1: 590 Q41 V29
GMAT 2: 540 Q44 V20
GPA: 3.5
WE: Programming (Computer Software)
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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23 Sep 2013, 22:47
abid1986 wrote:
jbsears wrote:
Here is the question and answer but they just don't make sense to me. The way I read it the answer they give is wrong, but I can't find any verification of this on the web. The problem is the explanation relies on the percentages of total sales but the question mentions the percentage is only on A's individual sales and B's individual sales. Therefore x would not be the same for each as it is in the explanation. I didn't check all answers but D works if Salesperson B made all the sales and Salesperson A none.

PLEASE SOMEONE HELP HE THIS IS DRIVING ME CRAZY! THE OG IS NOT SUPPOSED TO MAKE ANY MISTAKES, ESPECIALLY IF MY GMAT SCORE COUNTS ON THE SAME PEOPLE.

114. Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?

A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

Reason given in book:

Let x represent the total weekly sales amount at which both salespersons earn the same compensation. Then, the given information regarding when Salesperson A's weekly pay equals Salesperson B's weekly pay can be expressed as:

360 / 0.06 (x-1,000) = 0.08 x
x = 15,000

We have to make Compensation same for Sales Man A and B
Compensation depends on total sales and we dont know total sales.
Therefore,
Let X be total sales for both person for that week
Compensation of A = 8% of total sales = 0.08 of X

Compensation of B = 360 +0.06 (x - 1000)

Comp A = Comp B
0.08x = 360 + 0.06(x -1000)
0.08x = 360 + 0.06x - 60
0.02x = 300
0.01x = 150
x=15000

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps
Math Expert
Joined: 02 Sep 2009
Posts: 50009
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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24 Sep 2013, 00:06
3
3
shameekv wrote:
abid1986 wrote:
We have to make Compensation same for Sales Man A and B
Compensation depends on total sales and we dont know total sales.
Therefore,
Let X be total sales for both person for that week
Compensation of A = 8% of total sales = 0.08 of X

Compensation of B = 360 +0.06 (x - 1000)

Comp A = Comp B
0.08x = 360 + 0.06(x -1000)
0.08x = 360 + 0.06x - 60
0.02x = 300
0.01x = 150
x=15000

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps

I don't see an ambiguity in this problem.

Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?
A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

A's compensation = \$360 + 6 percent of the A's total sales above \$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of \$1,000, then A's compensation is \$360 and B's compensation is \$80, so for \$1000 A's compensation is greater than that of B's BUT if each has the sales of \$100,000, then A's compensation is \$360+0.06*99,000=\$6,300 and B's compensation is \$8,000, so for \$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salepeople earn the same compensation?

Say that amount is \$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=\$15,000. So, if each has the sales of \$15,000, then A's compensation is the same as that of B's.

Hope it's clear.
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Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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24 Sep 2013, 00:44
Bunuel wrote:
shameekv wrote:
abid1986 wrote:
We have to make Compensation same for Sales Man A and B
Compensation depends on total sales and we dont know total sales.
Therefore,
Let X be total sales for both person for that week
Compensation of A = 8% of total sales = 0.08 of X

Compensation of B = 360 +0.06 (x - 1000)

Comp A = Comp B
0.08x = 360 + 0.06(x -1000)
0.08x = 360 + 0.06x - 60
0.02x = 300
0.01x = 150
x=15000

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps

I don't see an ambiguity in this problem.

Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?
A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

A's compensation = \$360 + 6 percent of the A's total sales above \$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of \$1,000, then A's compensation is \$360 and B's compensation is \$80, so for \$1000 A's compensation is greater than that of B's BUT if each has the sales of \$100,000, then A's compensation is \$360+0.06*99,000=\$6,300 and B's compensation is \$8,000, so for \$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salepeople earn the same compensation?

Say that amount is \$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=\$15,000. So, if each has the sales of \$15,000, then A's compensation is the same as that of B's.

Hope it's clear.

But Bunuel if each sales is equal to 15000 then the Total Weekly sales will be equal to 30000 i.e. (A's Individual weekly sale + B's individual weekly sale)/ And the question asks us total weekly sales rather than indicidual weekly sales of each of them.

Could you please let me know if my understanding about the question is correct here?

Thanks!!
Math Expert
Joined: 02 Sep 2009
Posts: 50009
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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24 Sep 2013, 00:51
shameekv wrote:
Bunuel wrote:
shameekv wrote:

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps

I don't see an ambiguity in this problem.

Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?
A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

A's compensation = \$360 + 6 percent of the A's total sales above \$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of \$1,000, then A's compensation is \$360 and B's compensation is \$80, so for \$1000 A's compensation is greater than that of B's BUT if each has the sales of \$100,000, then A's compensation is \$360+0.06*99,000=\$6,300 and B's compensation is \$8,000, so for \$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salepeople earn the same compensation?

Say that amount is \$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=\$15,000. So, if each has the sales of \$15,000, then A's compensation is the same as that of B's.

Hope it's clear.

But Bunuel if each sales is equal to 15000 then the Total Weekly sales will be equal to 30000 i.e. (A's Individual weekly sale + B's individual weekly sale)/ And the question asks us total weekly sales rather than indicidual weekly sales of each of them.

Could you please let me know if my understanding about the question is correct here?

Thanks!!

No. The questions asks for what amount the two compensation plans would give the same compensation.
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Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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21 Oct 2013, 22:44
Bunuel wrote:
shameekv wrote:
abid1986 wrote:
We have to make Compensation same for Sales Man A and B
Compensation depends on total sales and we dont know total sales.
Therefore,
Let X be total sales for both person for that week
Compensation of A = 8% of total sales = 0.08 of X

Compensation of B = 360 +0.06 (x - 1000)

Comp A = Comp B
0.08x = 360 + 0.06(x -1000)
0.08x = 360 + 0.06x - 60
0.02x = 300
0.01x = 150
x=15000

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps

I don't see an ambiguity in this problem.

Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?
A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

A's compensation = \$360 + 6 percent of the A's total sales above \$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of \$1,000, then A's compensation is \$360 and B's compensation is \$80, so for \$1000 A's compensation is greater than that of B's BUT if each has the sales of \$100,000, then A's compensation is \$360+0.06*99,000=\$6,300 and B's compensation is \$8,000, so for \$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salepeople earn the same compensation?

Say that amount is \$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=\$15,000. So, if each has the sales of \$15,000, then A's compensation is the same as that of B's.

Hope it's clear.

Hey bunuel,
can you please post few more links to practice questions similar to this one.
Math Expert
Joined: 02 Sep 2009
Posts: 50009
Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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21 Oct 2013, 22:55
1
Yash12345 wrote:
Bunuel wrote:
shameekv wrote:

Thats where the problem is, the question says Compensation of B is 8% of B's Total Sales and Not Overall sales (which will take both A's and B's sales into account)

By equating "0.08x = 360 + 0.06(x -1000)" we are assuming that Sales by B and A are same i.e. "x" which finally comes to 15000. But that is not how it should be solved!!!

Consider Kudos if the post helps

I don't see an ambiguity in this problem.

Salesperson A's compensation for any week is \$360 plus 6 percent of the portion of A's total sales above \$1,000 for that week. Salesperson B's compensation for any week is 8 percent of B's total sales for that week. For what amount of total weekly sales would both salepeople earn the same compensation?
A. \$21,000
B. \$18,000
C. \$15,000
D. \$ 4,500
E. \$4,000

A's compensation = \$360 + 6 percent of the A's total sales above \$1,000.
B's compensation = 8 percent of B's total sales.

Whose compensation is greater? Well it depends on the sales:
If each has the sales of \$1,000, then A's compensation is \$360 and B's compensation is \$80, so for \$1000 A's compensation is greater than that of B's BUT if each has the sales of \$100,000, then A's compensation is \$360+0.06*99,000=\$6,300 and B's compensation is \$8,000, so for \$100,000 A's compensation is less than that of B's.

The question asks: for what amount would both salepeople earn the same compensation?

Say that amount is \$x, then we need such x for which 360+0.06(x-1,000)=0.08x --> x=\$15,000. So, if each has the sales of \$15,000, then A's compensation is the same as that of B's.

Hope it's clear.

Hey bunuel,
can you please post few more links to practice questions similar to this one.

Similar questions:
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each-week-harry-is-paid-x-dollars-per-hour-for-the-first-131475.html
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Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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13 Nov 2014, 10:19
OPEN DISCUSSION OF THIS QUESTION IS HERE: salesperson-a-s-compensation-for-any-week-is-360-plus-6-per-167917.html
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Re: Salesperson A's compensation for any week is \$360 plus 6  [#permalink]

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